Singapore Airlines puts fresh Air India funding under closer review

Singapore Airlines said it would carefully assess any request for additional funding from Air India as the Indian carrier’s losses weigh on the group’s earnings and compete with its other capital requirements.

Responding to questions ahead of its annual general meeting, Singapore Airlines said its board would consider Air India’s business strategy as well as the group’s spending needs before approving further capital.

“The Board will carefully consider any requests for additional capital from Air India, taking into consideration the Group’s other capital requirements and Air India’s business strategy,” the airline said.

Singapore Airlines said its capital allocation process also considers operating cash flow, investment in new aircraft and products, and strategic holdings such as Air India.

The remarks stop short of committing fresh funds but signal that additional support will not be automatic, even as Singapore Airlines continues to describe its 25.1% stake in Air India as a central part of its multi-hub strategy.

The Singapore carrier said the investment gives it access to India’s domestic aviation market and international passenger flows through Indian hubs, complementing its home base in Singapore. It remains the only non-Indian airline group with a direct stake in Air India.

Singapore Airlines became a shareholder in the enlarged Air India after Vistara, its joint venture with Tata Sons, was merged with the airline in November 2024. Tata Sons owns the remaining 74.9%.

Air India’s financial performance has since become a significant drag on Singapore Airlines.

The group’s share of Air India’s losses reached S$945.2 million in the year ended March 2026. The carrying value of its Air India investment fell to S$1.13 billion from S$2.02 billion a year earlier, according to responses issued to the Securities Investors Association Singapore. Air India recorded a loss after tax of S$3.77 billion and had net liabilities of S$1.02 billion.

Singapore Airlines’ net profit fell 57.4% to S$1.18 billion during the year. The decline reflected the absence of a S$1.1 billion accounting gain booked a year earlier following the Vistara merger, as well as a full year of losses from Air India. Operating profit, however, rose 39% to S$2.38 billion on stronger demand, higher yields and lower full-year fuel costs.

The group said Air India continues to face high fuel prices, supply-chain disruptions, a weaker rupee, the closure of Pakistani airspace to Indian carriers and the fallout from the AI171 accident.

It nevertheless said Air India had made progress in areas including fleet renewal, customer experience, its network and operational performance.

Singapore Airlines said it remained committed to working with Tata Sons on the turnaround, including through board oversight and aviation expertise. But its response makes clear that the strategic importance of India will be weighed against the cost of the rehabilitation. Corporate enthusiasm has, at last, encountered a capital-allocation committee.