Singapore Airlines has booked operating losses of about S$1bn ($780mn) on Air India less than two years after taking a 25 per cent stake in the ailing carrier, as analysts warn of more pain ahead. The investment in Air India in November 2024 — just months before a catastrophic plane crash and ahead of this year's jet fuel crisis — now looks spectacularly badly timed.

Air India has suffered from being blocked from Pakistan airspace, a weakening rupee and broader supply chain problems. "It has been an annus horribilis for Air India," said a Singapore Airlines executive. "The timing could not have been worse."

Singapore Airlines’ investment can be traced back to the 2013 launch of Vistara, another Indian airline, in a joint venture with Tata Sons. The airline's management team knew that Air India would require years of significant investment to turn it around. Last March, just five months after signing the deal, Singapore Airlines was required to inject a further S$167mn into the business, bringing its total capital investment to S$989mn.

"I do not expect Air India to become profitable over the next few years," said Jason Sum, an analyst at the bank DBS. "Given the scale of the losses and the time needed to rebuild the airline, any meaningful earnings contribution to Singapore Airlines are likely to remain several years away."