Singapore Airlines Ltd. posted a steep drop in annual net profit as widening losses at Air India weighed on results, and flagged a cautious outlook that factors in risks from the Iran war.

Net income declined 57% from a year ago to S$1.18 billion ($927 million) in the period ended March 31, the airline said Thursday. While that beat analyst estimates of S$1.08 billion, the performance highlighted the drag from S$828.5 million of losses at associate companies, which includes the Singaporean carrier’s 25.1% stake in Air India.