Singapore Airlines (SIA) has reported record revenue of 20.5 billion Singapore dollars ($16.06 billion) for the financial year ending March 31, driven by increased demand and lower fuel costs. However, the airline's net profit fell sharply by 57.4% year-on-year to SG$1.18 billion, primarily due to significant losses from its investment in Air India, which amounted to SG$945.2 million.
Air India has faced numerous challenges, including operational disruptions from geopolitical tensions and a tragic crash, leading to a loss of SG$3.56 billion, exceeding earlier expectations. Despite these setbacks, SIA's CEO Goh Choon Phong emphasized the company's commitment to supporting Air India, citing progress in its transformation efforts.
Analysts suggest that SIA may need to inject additional capital into Air India, potentially impacting its dividend capacity. While the short-term outlook remains challenging, some experts believe that SIA's investment in the growing Indian aviation market could yield long-term benefits