Air India H1 FY27 Loss Shrinks by ₹2,000 Crore

Singapore Airlines announced on Wednesday that a reduction of approximately ₹2,000 crore in the financial losses of air india during the first half of fiscal year 2027 helped cushion a drop in its own net profit. The foreign carrier stated that lower share of losses from the Indian airline, alongside reduced taxes, assisted in balancing out lower operating profits.

During the first half of the current fiscal year, the Singapore Airlines group registered a 44 per cent drop in net profit, bringing the total down to SGD 134 million, which translates to roughly ₹1,000 crore. Financial records submitted by the airline indicate that its share of losses in Air India amounted to SGD 361.7 million, equivalent to about ₹2,713 crore, improving from SGD 429.5 million or around ₹3,222 crore recorded in the corresponding period of the previous year.

Air India's reduced first-half loss helped Singapore Airlines offset a wider net profit decline.

Based on Singapore Airlines holding a 25.1 per cent stake in Air India and recording its share of profits or losses within consolidated results, these figures imply that Air India posted a total loss of ₹10,851 crore for the first half of FY27. This represents an improvement compared to the loss of ₹12,885 crore reported during the same timeframe last year.

Transformation Progress and Ongoing Collaboration

In an official results statement, Singapore Airlines acknowledged that Air India has achieved tangible progress through its multi-year transformation strategy. The initiatives include upgrades to operational performance and customer experience, which have successfully driven positive shifts in customer sentiment as reflected by improvements in the Net Promoter Score and various external performance accolades.

Both Singapore Airlines and Tata Sons recognize that a corporate transformation of this magnitude requires time. The partners continue cooperating closely to foster Air India's progress toward sustainable growth. Joint efforts are directed at building structural cost efficiencies, generating greater operational synergies between Air India and Air India Express, and sharpening commercial strategies to successfully address current external challenges while elevating the overall customer proposition.

Why it matters

This financial update highlights the ongoing restructuring progress within India's aviation sector, demonstrating that targeted operational changes and cost management are beginning to narrow losses at a major carrier. For stakeholders and passengers in India and South Asia, the gradual improvement in service quality and operational metrics reflects the ongoing multi-year transformation supported by Tata Sons and Singapore Airlines.