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Singapore Airlines Gains on Strong Results as Air India Cuts Capacity

Singapore Airlines shares surged 2.6% Friday following better-than-expected annual profit, marking the carrier's strongest single-day performance in five weeks. The gain reflects investor appetite for earnings beats despite mounting headwinds across the aviation sector. Air India, which Tata Group and Singapore Airlines co-own, announced plans to reduce international flight capacity by 27% starting in June amid elevated operating costs tied to regional geopolitical tensions. The move signals growing pressure on carriers to manage profitability as fuel expenses and route restrictions weigh on margins. Analysts note that strong corporate earnings across multiple sectors are currently offsetting investor concerns about near-term operational challenges. However, consensus views the current earnings strength as masking potential difficulties ahead, particularly for companies with significant exposure to international routes and volatile input costs.