Singapore Airlines on Thursday reported a massive 57.4% fall in its annual net profit for the financial year ending March 2026, reflecting the growing financial pressures faced by the global aviation industry. The airline group posted a net profit of SGD 1.184 billion, a sharp decline from SGD 2.778 billion recorded in the previous fiscal year. The company said the steep fall was mainly caused by losses linked to Air India, persistently high jet fuel prices, and the absence of a major one-time accounting gain that had significantly boosted profits during the earlier financial year.

Singapore Airlines explained that the previous year’s financial performance had been exceptionally strong because of a one-off gain arising from the merger of Vistara with Air India. That extraordinary accounting benefit had inflated earnings in 2024-25, making the latest year’s comparison appear significantly weaker. Without the merger-related boost, the airline’s core earnings came under pressure from rising operational costs and increased financial exposure linked to its investment in Air India, which continues to undergo a major restructuring and expansion process.

The airline group also highlighted the impact of rising fuel costs on its profitability. Aviation turbine fuel remains one of the biggest expenses for airlines globally, and ongoing geopolitical tensions in West Asia, along with disruptions in global oil supply chains, have kept prices volatile. Singapore Airlines noted that higher fuel expenditure and operational costs reduced margins across multiple segments of its business. In addition, competitive international travel markets and capacity expansion by global carriers added further pressure on earnings during the year.

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Despite the sharp decline in profits, Singapore Airlines reaffirmed its commitment to Air India and maintained that its 25.1% stake in the Tata Group-owned carrier remains strategically important. The company described India as one of the world’s fastest-growing aviation markets and said its investment gives Singapore Airlines a strong long-term presence in the country. The airline stressed that the partnership complements its Singapore hub operations and helps strengthen connectivity between India, Southeast Asia, and international destinations across Europe, North America, and Australia.

“This strategic investment provides the Group with a direct stake in one of the world's largest and fastest-growing aviation markets, complementing its Singapore hub and strengthening its long-term growth,” Singapore Airlines said in its official statement. The airline added that it sees long-term value in the Indian aviation market despite short-term financial challenges. It believes the collaboration with Air India will eventually create stronger route networks, improve passenger connectivity, and expand market reach for both carriers in the coming years.

The financial results come at a challenging time for the global aviation sector, which continues to deal with rising operating expenses, aircraft delivery delays, supply chain disruptions, and uncertainty in international energy markets. Airlines across the world have been trying to balance expansion plans with cost pressures while responding to growing travel demand after the pandemic recovery. Singapore Airlines’ results underline how even major international carriers remain vulnerable to fuel price volatility and investments in developing airline partnerships despite strong passenger traffic growth globally.

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