Singapore Airlines posted a nearly 68 per cent drop in half-year net profit on Thursday, November 13, as the airline faced tougher competition, lower interest income, and losses from its stake in Air India.
The flag carrier said its half-year net profit for the six months ending September 30 came to S$239 million, compared with S$742 million a year earlier. Analysts had expected around S$341.9 million.
Total expenditure increased by S$170 million, even though net fuel costs fell. Singapore Airlines explained that the rise in spending was due to its capacity expansion and inflationary pressures across several cost areas.
The company’s interest income also fell by S$103 million, hit by smaller cash balances and lower interest rates. In addition, its share of results from associated companies dropped S$417 million, mainly because of losses reported by Air India.
Singapore Airlines began accounting for Air India’s results from December 2024, after completing the integration of its joint venture Vistara into the Indian carrier. The airline holds a 25.1 per cent stake in Air India as part of its long-term multi-hub strategy, aiming to maintain a presence in one of the world’s largest and fastest-growing aviation markets.
“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,” the airline said.
Singapore Airlines announced an interim dividend of five Singapore cents per share, plus a special dividend of three Singapore cents per share. The airline noted that demand for air travel remains strong, particularly with the year-end peak approaching.
“The airline industry continues to face challenges from geopolitical tensions, macroeconomic headwinds, inflationary cost pressures, and supply chain constraints,” the company said.
“The SIA Group remains well-positioned to navigate this environment, supported by its strong balance sheet, disciplined cost management, robust digital capabilities, and a highly talented and resilient workforce.
