Singapore Airlines has reported a steep 59% decline in net profits for the second quarter of 2025, largely due to significant losses linked to its investment in Air India, the Indian carrier at the center of the country’s deadliest aviation disaster in three decades.
The national airline posted net profits of S$186 million (US$145 million) for the three months ending June, down from S$266 million in the same period last year. The airline attributed S$122 million of the losses to its associated companies, “notably from Air India’s financial results.”
Despite the profit slump, Singapore Airlines’ revenue rose slightly by 1.5% to S$4.8 billion, reflecting what the company described as “strong demand for air travel” amid continuing global economic and geopolitical uncertainties.
The sharp financial hit follows the tragic crash of an Air India flight in June. The London-bound aircraft went down shortly after takeoff from Ahmedabad, claiming the lives of more than 240 passengers and crew, with just one survivor. The incident is now considered India’s worst aviation tragedy in over 30 years.
Investigations into the crash remain ongoing, with global attention turning toward the actions of the Air India cockpit crew. Media speculation has pointed to a possible error by the captain involving the aircraft’s fuel switches. However, India’s Air Accident Investigation Bureau has cautioned international media outlets against drawing premature conclusions, labeling such reporting as “irresponsible.”
Singapore Airlines acquired a 25% stake in Air India last year as part of a broader merger between Vistara—its joint venture with Tata Sons—and the Indian flag carrier. The restructuring was part of Tata’s efforts to overhaul Air India after buying it out of state ownership in 2022.
However, those efforts have faced persistent challenges. Even prior to the crash, Air India struggled with widespread criticism over poor service quality and ageing aircraft. The airline continues to face mounting competition from IndiGo, India’s dominant domestic carrier, which holds close to a two-thirds market share and is expanding its global footprint.
Earlier this month, Tata disclosed that Air India recorded an annual loss of ₹108.59 billion (US$1.25 billion) for the financial year ending March 2025—the first time it has released such figures since the full merger of its aviation arms.
Despite the grim financials and reputational fallout, Singapore Airlines reaffirmed its commitment to its partnership with Tata Sons and to supporting Air India’s turnaround.
“Working closely with its longtime partner Tata Sons, the group will continue to support Air India’s ongoing transformation journey,” the company said in its quarterly results statement.
