Singapore Airlines earnings plunge 82 percebt in second quarter

International

Net profit drops to $40 million amid lower interest income and losses linked to Air India stake

Singapore Airlines reported a sharp 82.1% year-on-year decline in net profit for the second quarter of its financial year, citing reduced interest revenue and a substantial loss related to its stake in Air India.

Net profit fell to 52 million Singapore dollars ($40 million) for the July–September period, down from $223 million in the same quarter last year, according to financial results released on Thursday. For the first half of the fiscal year, net profit also contracted significantly, sliding 67.8% to $183.8 million.

Mixed performance: Revenue up, profits down

Despite the drop in profits, revenue increased 2.2% year-on-year in the July–September period, reaching $3.76 billion.

Interest income decreased by $32.3 million, driven by lower cash balances and falling interest rates. Meanwhile, contributions from associated companies — including Air India — resulted in a $226.8 million loss.

Air India weighs heavily on results

Singapore Airlines (SIA) holds a 25.1% stake in Air India following the airline’s merger with Vistara in November 2024, a joint venture with India’s Tata Sons. SIA began equity accounting for Air India in December 2024.

According to Bloomberg, Air India has reportedly sought at least 100 billion rupees ($1.1 billion) in financial assistance from SIA and Tata Sons after a June accident that claimed the lives of more than 240 passengers. Air India had already dampened SIA’s results in the previous quarter.

“Despite the ongoing challenges, the SIA Group remains committed to working with its partner Tata Sons to support Air India’s comprehensive multi-year transformation programme,” SIA said in a statement.

Demand remains strong, outlook uncertain

SIA noted that demand for air travel remains strong heading into the third-quarter peak season. However, the airline warned that the outlook for air cargo remains uncertain amid market volatility and shifting trade regulations.

“The airline industry continues to face challenges from geopolitical tensions, macroeconomic headwinds, inflationary cost pressures, and supply chain constraints,” the company added.