Now Reading: Singapore Airlines backs Air India as losses narrow, cargo eyed
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Singapore Airlines backs Air India as losses narrow, cargo eyed
The Story in Brief
Singapore Airlines (SIA) has backed Air India CEO Tewolde Gebremariam’s turnaround efforts, even as its share of losses from the carrier fell 15.8% to SGD 361.7 million (around Rs 2,500 crore) in the six months ended 30 September, from SGD 429.5 million a year earlier. SIA holds a 25.1% stake in Air India and said both Tata Sons and itself recognise that transformation will take time. SIA CEO Goh Choon Phong told analysts on Thursday, 12 November, that the loss reduction was largely due to a reversal of earlier provisions, not an improvement in Air India’s financial performance.
Goh identified cargo conversion of passenger aircraft and expanding overseas ticket sales as underexploited revenue opportunities. On operations, Air India is shifting some international services from Delhi to Mumbai to reduce extra flying distance from Pakistan’s airspace restrictions. The airline has 600 aircraft on order and is refurbishing 26 Boeing 787-8 and 13 Boeing 777-300ER aircraft, with work targeted for completion by 2028. SIA reported a net profit of SGD 209.7 million for the September quarter, nearly four times year-ago SGD 52.4 million, but first-half profit fell 43.9% to SGD 133.9 million due to higher fuel costs.
Air India CEO Gebremariam said the airline’s cost per available seat kilometre was ‘too high’ and that unit costs must come down to at least industry levels. Asked when Air India would return to profitability, he said, ‘Very soon.’ SIA and Air India launched the first phase of joint commercial initiatives in October, with reciprocal loyalty benefits planned for the second quarter of 2027.
Indian Opinion Analysis
Forbes India and the Economic Times both report Singapore Airlines backing Air India's turnaround, but they frame the loss reduction differently. Forbes India leads with the 15.8% decline in SIA's share of losses as progress, citing lower losses from Air India contributing SGD 110 million to quarterly profit. The Economic Times, however, emphasizes that SIA CEO Goh Choon Phong attributed the 16% drop largely to a reversal of earlier provisions, not financial improvement. Forbes India includes CEO Gebremariam's comment that unit costs are 'too high' and his targeted profitability 'very soon.' The Economic Times adds underexploited cargo and overseas sales as identified by Goh, and mentions shifting international services from Delhi to Mumbai to cut fuel burn. The coverage is uniform in reporting SIA's backing but diverges on whether the loss reduction signals genuine improvement. The key watch item remains SIA's next quarterly disclosure for the period ending March 2027.
Coverage: 2 sources, 2 neutral
Sources (2): forbesindia.com (neutral report), economictimes.indiatimes.com (neutral report)
This brief was synthesised by AI from the 2 sources linked above, so one read covers every framing they carry. Methodology and corrections.
