SIA shares dropped 1.7% after Air India tragedy

Shares of Singapore Airlines (SIA), which holds 25.1 per cent stake in Air India, dropped on the Singapore Exchange on Friday, a day after the Indian carrier's plane crash in Ahmedabad.

Shares of SIA were down 1.7 per cent, or 12 Singapore cents, to SGD 6.91 as at the midday trading break, after earlier falling up to 2.1 per cent, according to The Straits Times.

At least 265 people were killed when a London-bound Air India plane carrying 242 passengers and crew crashed into a medical college complex shortly after taking off from the Ahmedabad airport.

The Straits Times Index (STI) was down 0.5 per cent as Asian markets fell after Israel carried out airstrikes against targets in Iran, raising fears of fresh conflict in the Middle East and sending oil prices soaring, according to the Singapore daily.

STI is a main index tracking shares prices of Singapore Exchange-listed companies.

On June 12, SIA said it is "offering full support and all necessary assistance to Air India during this time".

"Singapore Airlines extends our deepest condolences to all passengers, crew members and their families affected by Air India Flight AI171. Our thoughts and prayers are with everyone impacted during this difficult time," the broadsheet quoted SIA as saying.

SIA's stake in Air India came about after the Indian flagship carrier merged with Vistara in November 2024. Before the merger, Vistara was jointly owned by Tata Sons and SIA.

SIA's stake in the enlarged Air India allows it to participate directly in the fast-expanding Indian aviation market. SIA and Air India also have a codesharing partnership.