Air India’s Challenges Mostly External, Turnaround A Long-Term Process: SIA CEO

Air India’s transformation journey will take time and cannot be achieved through quick fixes, Singapore Airlines CEO Goh Choon Phong said on Friday, while stressing that many of the airline’s current difficulties are “largely external challenges.”

Speaking at a briefing on the SIA Group’s financial performance for 2025-26, Goh said the Tata Group-owned carrier continues to make progress in its multi-year restructuring and expansion programme despite facing multiple operational and financial headwinds.

The SIA Group on Thursday reported a 57.4 per cent decline in net profit to SGD 1.184 billion for the financial year ended March 2026. The decline was attributed mainly to the absence of a one-time accounting gain from the Vistara merger recorded in the previous year, along with losses incurred by Air India.

According to figures disclosed in the group’s annual financial report, Air India posted a loss of more than SGD 3.56 billion (over Rs 26,700 crore) during the fiscal year as it grappled with rising costs, operational disruptions and currency-related pressures.

During the presentation, Goh identified several major challenges affecting the airline, including global supply chain disruptions , the ongoing Middle East conflict, closure of Pakistan’s airspace for Indian carriers, rupee depreciation and the fallout from the AI171 crash.

The Pakistan airspace restrictions, which have continued for over a year, have forced Air India to operate longer international routes, resulting in increased fuel consumption and higher operating expenses.

The airline also faced temporary capacity reductions following the crash of an Air India Boeing 787-8 aircraft operating flight AI171 from Ahmedabad to London Gatwick on June 12, 2025. The accident claimed 260 lives shortly after take-off from Ahmedabad airport.

“Air India has largely external challenges,” Goh said, adding that the airline’s transformation efforts are ongoing and that “it is going to be a long game, and there is no shortcut.”

Despite the challenges, he said Air India continues to make tangible progress under its transformation roadmap. The airline has hired more than 14,000 employees since 2022 , while the average age of its workforce has reduced significantly from 54 years to 36 years.

Goh also underlined the strategic importance of the investment in Air India for Singapore Airlines, saying it provides the group direct access to India’s rapidly growing domestic and international aviation markets across both full-service and low-cost segments.

The Tata Group reacquired Air India from the Indian government in January 2022, and Singapore Airlines later acquired a 25.1 per cent stake in the merged airline entity following the Vistara integration.