New Delhi: Air India’s losses may be casting a long shadow on its 25.1% stakeholder Singapore Airlines (SIA) results but the latter on Thursday said it remains “committed” to its investment in the Maharaja.
And despite AI facing multiple headwinds like airspace closures and high jet fuel prices, SIA said the Indian airline is both making operational improvements and “elevating” customer experience thought fleet renewal.While the SIA group on Thursday reported a 39% increase in its full year operating profit to $2.4 billion with revenue reaching record levels of $20,522 million, its “net profit declined due to the absence of a prior year one-off accounting gain, coupled with the share of full year losses from Air India.”“The (SIA) Group’s net profit declined by $1,594 million (-57.4%) to $1,184 million, primarily due to the absence of the $1,098 million non-cash accounting gain recognised in Nov 2024 upon the completion of the Air India-Vistara merger.
The swing from a share of profits of associated companies last year to a loss this year (-$846 million) was due to the group accounting for its share of Air India’s full year losses, versus only four months the previous year,” SIA said in a statement Thursday.Despite the Maharaja’s financial condition, the trusted airline partner of Tata Sons (which owns the remaining 74.9% stake in AI) remains remains “committed” to its investment in the AI Group “which is a core component of (SIA’s) long-term multi-hub strategy.”“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.
