Air India makes tangible progress in transformation, but turnaround will take time: Singapore Airlines

New Delhi: Air India has made tangible progress in its multi-year transformation, with improvements in customer experience and operational performance, although the transformation process will take time, Singapore Airlines (SIA) Group said on Wednesday.

In its financial results announcement for the first half of FY2026-27, SIA said customer sentiment towards Air India has also improved, as reflected in the positive trajectory of its Net Promoter Score (NPS).

"Air India has made tangible progress in its multi-year transformation, including enhancements to customer experience and operational performance," the group stated.

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However, acknowledging the challenges associated with the turnaround, SIA said, "SIA, and its partner, Tata Sons, recognise that a transformation of this scale will take time."

The two partners are working to improve Air India's cost efficiencies, strengthen synergies between Air India and Air India Express, and sharpen its commercial strategy to navigate external challenges.

SIA, which holds a 25.1 per cent stake in the Air India Group, described its investment as a key pillar of its multi-hub strategy, providing access to one of the world's largest and fastest-growing aviation markets.

The airline group also reported a lower share of losses from associated companies, mainly Air India, which contributed SGD 68 million to the year-on-year improvement in its first-half financial performance.

In the second quarter alone, the improvement attributable to lower losses from associated companies, mainly Air India, stood at SGD 110 million.

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Meanwhile, SIA Group reported a 43.9 per cent decline in first-half net profit to SGD 134 million, despite record revenue of SGD 11.3 billion, as elevated jet fuel prices weighed on profitability.

The group said average jet fuel prices surged 86.7 per cent year-on-year to USD 171 per barrel during the six-month period, amid the ongoing Middle East conflict.

The rise in fuel costs pushed the group's total expenditure up by 20.9 per cent to SGD 10.73 billion, while net fuel costs increased 56 per cent to SGD 3.97 billion. Consequently, operating profit declined 29.1 per cent to SGD 569 million from SGD 803 million in the corresponding period last year.

However, the group reported improved performance in the second quarter, with net profit rising to SGD 210 million from SGD 52 million a year earlier. Operating profit increased 16.3 per cent to SGD 463 million, supported by a 14.3 per cent rise in quarterly revenue to SGD 5.58 billion.

On the operational front, Singapore Airlines and its subsidiary Scoot carried a record 21.8 million passengers during the first half, up 5 per cent year-on-year. Passenger revenue grew 16.8 per cent to SGD 9.10 billion, while cargo revenue increased 30.2 per cent to SGD 1.39 billion, supported by higher yields and cargo demand.

Looking ahead, SIA said it would continue advancing its multi-hub strategy through its investment in Air India while focusing on cost management and strengthening commercial partnerships.