New Delhi: Air India has made tangible progress in its multi-year transformation, which will also take time, its key shareholder Singapore Airlines Group said on Wednesday as it reported a net profit of SGD 210 million in the September quarter, mainly due to a lower share of losses from the Indian airline and other associate companies.

Singapore Airlines (SIA) Group and Tata Sons are also working to unlock "great synergies" between Air India and Air India Express as well as strengthen structural cost efficiencies.

On Wednesday, SIA Group posted a net profit of 134 million Singapore Dollars (SGD) in the six months ended September 2026, nearly 44 per cent lower than SGD 239 million recorded in the year-ago period.

In the first half of the current fiscal year, SIA said the decline was largely attributable to the decline in operating profit and "partially offset by the lower share of losses from associated companies, mainly Air India (+ SGD 68 million), and lower tax expenses (+ SGD 70 million)".

SIA, which holds a 25.1 per cent stake in loss-making Air India, sees the shareholding as a key pillar of its multi-hub strategy.

"The Group posted a second-quarter net profit of SGD 210 million, up SGD 158 million year-on-year. This was due to the stronger operating profit (+ SGD 65 million) and a lower share of losses from associated companies, mainly Air India (+ SGD 110 million)," it said in an earnings release.

SIA said Air India has made tangible progress in its multi-year transformation, including enhancements to customer experience and operational performance.

"SIA, and its partner, Tata Sons, recognise that a transformation of this scale will take time.

"Both partners continue to work closely to support Air India's journey towards profitable growth, including strengthening structural cost efficiencies, unlocking greater synergies between Air India and Air India Express, sharpening its commercial strategy to navigate current external challenges, and elevating its customer proposition," the release said.

In October, Air India set up a multidisciplinary team to identify cost-saving opportunities, with the new CEO and MD, Tewolde Gebremariam, urging staff to embed a mindset of frugality and accountability in all their work.

Regarding the 25.1 per cent stake in Air India, SIA also said the direct participation in one of the world's largest and fastest-growing aviation markets complements the group's main hub in Singapore and broadens access to new traffic flows.

According to SIA, the airline industry operates in an uncertain environment, with volatile geopolitical developments, including the conflict in the Middle East, adding complexity across operations and supply chains.

"Jet fuel prices remain elevated relative to pre-conflict levels, and continue to place significant pressure on costs. While the Group has adjusted air fares and cargo rates, these measures do not fully offset the impact of sustained high fuel prices," it said.

The airline also noted that an extended conflict could also have spillover effects on broader macroeconomic conditions, potentially leading to further inflationary cost pressure and affecting demand for passenger travel and air freight.

"The Group is in a strong position to navigate this volatility. Its diversified global network and broad mix of traffic flows help to cushion shifts in demand...," it added.