economy
Singapore Airlines sticking with Air India for the "long game" despite losses
Air India has been a big drag on SIA's earnings, but the airline says its investment is part of the "long game"
TL;DR
- Singapore Airlines (SIA) reported record revenue of S$20.5 billion for the financial year ended March 31, but net profit plunged 57.4% to S$1.18 billion, mainly due to Air India's losses.
- Air India has caused a loss of S$3.56 billion for the fiscal year, with SIA's share of the loss amounting to S$945.2 million.
- SIA CEO Goh Choon Phong stated that the airline will continue to support Air India, describing the investment as a "long game" and noting "tangible progress" in Air India's transformation.
- SIA holds a 25.1% stake in Air India after Vistara merged into the Indian carrier in December 2024, involving significant capital injections and future commitments.
- Analysts believe SIA will "definitely have to put in more money" due to Air India's magnitude of losses and operating pressures, which could constrain SIA's dividend capacity.
- Despite short-term pressures, the long-term outlook for India's aviation market is considered positive due to growing demand and infrastructure investment.