- Singapore Airlines sees tangible progress in Air India's transformation despite challenges
- SIA views its 25.1% stake in Air India as key to its long-term multi-hub strategy
- Air India faces headwinds including currency depreciation and supply chain issues
Singapore Airlines (SIA) has said it is seeing "tangible progress" in Air India's transformation despite the Indian carrier continuing to face operational and external challenges.
The airline made the remarks while responding to shareholder and investor queries ahead of its annual general meeting (AGM) scheduled for July 24.
According to a filing with the Singapore Exchange, SIA reaffirmed that its 25.1% stake in Air India remains a key part of its long-term multi-hub strategy, citing India's strong aviation growth potential. As reported by The Straits Times, the airline also addressed questions on Air India's future funding, geopolitical risks, digital services and customer experience.
SIA said its board would carefully evaluate any future request for additional capital from Air India after considering the group's own capital requirements and Air India's business strategy.
The airline, however, declined to comment on reports that Air India had sought a $1.1 billion capital infusion in October 2025.
Air India continues to face headwinds
SIA acknowledged that Air India continues to deal with several well-publicised challenges, including the depreciation of the Indian rupee, supply chain disruptions, closure of Pakistan's airspace and the June 2025 plane crash that claimed 260 lives.
Despite these hurdles, the Singapore carrier said Air India has made measurable progress across key areas, including customer experience, fleet and network expansion, operational performance, and improvements to its ground and in-flight services.
SIA added that its Chief Executive Officer serves as a non-executive and non-independent director on Air India's board, allowing the airline to provide strategic guidance and industry expertise.
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No formal financial guidance due to uncertainty
Responding to questions about its outlook for FY2026-27, SIA said it does not provide formal quantitative financial guidance because of the highly volatile nature of the aviation industry.
The airline cited uncertainties such as jet fuel prices, foreign exchange fluctuations, passenger demand, and geopolitical developments as key factors affecting earnings visibility.
It noted that its fuel hedging programme helps reduce the impact of volatile oil prices. Net fuel costs accounted for nearly 30% of the group's total expenditure in FY2025-26.
SIA also said it is closely monitoring global trade routes and adjusting cargo capacity based on market demand.
Airline strengthens digital services and crew safety
The airline also responded to shareholder concerns about its KrisFlyer mobile app and website.
SIA said it regularly upgrades its digital infrastructure and increases system capacity during high-demand periods, such as promotional sales, to minimise app performance issues.
Addressing concerns over incidents involving unruly passengers, SIA said its cabin crew are trained to identify disruptive behaviour and follow established safety protocols. Depending on the severity of an incident, passengers may receive warning letters, be blacklisted from future flights, or face action under applicable laws.
The airline said its strong balance sheet, digital capabilities, and global airline partnerships would help it navigate an increasingly competitive and uncertain operating environment.
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