Singapore Airlines has reported a drop in annual net profit despite achieving a new high in annual revenue. This decline follows three consecutive years of record earnings and comes amid an outlook clouded by the Middle East conflict and the impact of the Iran war on the aviation industry.
The profit drop was weighed down by widening losses at Air India, a carrier co-owned by the Tata Group and Singapore Airlines, which holds a 25 per cent stake. According to Singapore Airlines' annual financial statements, Air India posted a loss of US$2.8 billion for FY2025/26.
Singapore Airlines cited higher fuel prices, supply chain constraints, and airspace restrictions as key headwinds. In response to these rising costs, Air India plans to scale back over a quarter of its international flights starting in June.