Singapore Airlines (SIA) has seen the recorded value of its investment in Air India fall by S$334.7 million over six months, with the stake now valued at approximately S$799.9 million.
The decline was reflected in SIA’s interim financial statements for the six months ended Sep 30, 2026, released on Nov 11.
Despite the reduction in investment value, SIA chief executive officer Goh Choon Phong remains optimistic about India’s aviation industry and believes there is still considerable potential for growth.
The development comes as Air India continues its efforts to improve its financial performance following years of restructuring and operational challenges.
SIA Records S$361.7 Million Share of Air India’s Losses
According to SIA’s financial statements, its share of Air India’s losses amounted to S$361.7 million for the six months ended Sep 30, 2026.
This was lower than the S$429.5 million recorded during the corresponding period a year earlier, representing a reduction of S$67.8 million.
However, the smaller reported loss does not necessarily indicate that Air India’s underlying financial performance has improved.
During a post-earnings briefing on Nov 12, SIA chief financial officer Tan JoAnn explained that the reduction was largely attributable to the reversal of provisions made in previous financial years.
She did not disclose how much of the reported difference came from these reversals.
Value of SIA’s Air India Stake Falls From S$1.13 Billion
The carrying value of SIA’s investment in Air India declined from approximately S$1.13 billion at the end of March 2026 to S$799.9 million as at Sep 30.
This represents a reduction of S$334.7 million in just six months.
According to The Business Times, the decline reflects SIA’s share of Air India’s losses under the equity accounting method.
The investment was previously recorded at approximately S$2 billion at the end of March 2025, highlighting the substantial reduction in its book value over the subsequent 18 months.
SIA acquired a 25.1% stake in Air India following its merger with Vistara in November 2024. India’s Tata Sons holds the remaining 74.9% interest.
The investment gives SIA exposure to one of the world’s largest aviation markets, although the financial results demonstrate the challenges involved in turning that potential into sustainable profitability.
SIA CEO Remains Confident About India’s Aviation Market
Despite the substantial reduction in the investment’s carrying value, Goh remains positive about the long-term prospects of India’s aviation sector.
According to The Business Times, he highlighted Air India’s frequent-flyer programme, which has approximately 10 million members, as one of the airline’s important assets.
Goh also pointed to initiatives introduced by Air India’s new chief executive officer, Tewolde Gebremariam, aimed at increasing revenue and managing operating costs.
However, he cautioned that the impact of these changes would take time to become visible.
“Tewolde has just joined in September, so a lot of the measures that he is implementing obviously will take time to filter through,” Goh said, according to The Business Times.
SIA and Air India Expand Partnership
Beyond its investment in the Indian airline, SIA has also been strengthening its commercial relationship with Air India.
In October 2026, both airlines expanded their partnership to provide passengers with more flight options between Singapore and eight Indian cities.
The expanded arrangement allows customers to book eligible flights operated by either airline through the other’s booking channels.
The partnership is expected to improve connectivity between Singapore and India while giving both airlines greater opportunities to serve passengers travelling across the region.
For SIA, the Indian market remains an important part of its international growth strategy.
While the decline in Air India’s carrying value highlights the financial risks associated with the investment, SIA’s management continues to see opportunities in India’s expanding aviation market. Whether Air India’s restructuring efforts can eventually translate into stronger financial results remains an important factor for SIA’s investment going forward.