Daijiworld Media Network – New Delhi
New Delhi, Nov 12: Air India is estimated to have incurred losses of around Rs 10,500 crore during the first half of the financial year 2026-27, according to financial disclosures by Singapore Airlines (SIA), which holds a 25.1 per cent stake in the Indian carrier.
Singapore Airlines on Wednesday reported that its share of Air India's losses declined by 16 per cent to S$361.7 million (around Rs 2,640 crore) in the first half, compared to S$429.5 million (approximately Rs 3,140 crore) during the corresponding period last year.
Based on the exchange rate of S$1 equalling Rs 73 and the Tata Group's remaining stake, Air India's estimated losses stood at around Rs 10,500 crore, down from approximately Rs 12,500 crore in the same period last year. The Air India group had reported losses of Rs 22,000 crore in the financial year 2025-26.
Meanwhile, Singapore Airlines reported a net profit of S$134 million for the six months ended Wednesday, compared to S$239 million during the corresponding period a year earlier. Its total costs increased by more than 20 per cent to S$10.73 billion, while average jet fuel prices surged 86.7 per cent year-on-year to US$171 per barrel.
SIA said Air India had made tangible progress in its multi-year transformation programme. It attributed the decline in its first-half profit largely to lower operating profits, partly offset by a reduced share of losses from associated companies, mainly Air India, contributing an improvement of S$68 million, and lower tax expenses of S$70 million.
The airline also described its investment in Air India as a key pillar of its multi-hub strategy. SIA and the Tata Group continue to work together to support Air India's efforts towards profitable growth by improving cost efficiencies, strengthening synergies between Air India and Air India Express, refining its commercial strategy and enhancing customer services.
Air India's newly appointed Chief Executive Officer and Managing Director, Tewolde Gebremariam, had said in September that achieving sustainable profitability remained a key objective as the airline continued its transformation.
He acknowledged that a combination of external factors had affected the airline's path towards breaking even but emphasised that financial performance remained a priority. He also stressed the need to make cost discipline an integral part of the airline's organisational culture.