Singapore Airlines quarterly profit falls 59% on Air India losses, other factors

Singapore Airlines, which holds a 25.1 per cent stake in loss-making Air India, saw its total revenue rise 1.5 per cent to SGD 4.79 billion, whereas net profit dropped 58.8 per cent to SGD 186 million in the June quarter compared to the year-ago period.

Singapore Airlines Group's profit declined nearly 59 per cent to 186 million Singapore dollars in the June quarter as losses of Air India and other associated companies, along with lower interest income, trimmed its bottom line.

Singapore Airlines, which holds a 25.1 per cent stake in loss-making Air India, saw its total revenue rise 1.5 per cent to SGD 4.79 billion, whereas net profit dropped 58.8 per cent to SGD 186 million in the June quarter compared to the year-ago period.

In addition to the lower operating profit, the reduction in net profit was largely attributable to a lower interest income on the back of lower cash balances and interest rate cuts, the airline said in a statement on Monday.

The group also recorded "a share of losses of associated companies compared to a share of profits for the same quarter last year (-SGD 122 million), notably from Air India's financial results, which were not part of the Group's results for the same quarter last year", it said.

Singapore Airlines Group started equity accounting for Air India's financial performance from December 2024, following the full integration of Vistara into Air India. According to the statement, the demand for air travel remains healthy in the second quarter of FY2025-26 across most route regions due to the traditional summer peak.

"However, the global airline industry continues to face a volatile operating environment, with challenges ranging from geopolitical developments and macroeconomic fluctuations to changing market dynamics and supply chain constraints. The Group will be agile and proactive in responding to changes in demand patterns," the statement said.

Air India has been facing various headwinds in recent times. On June 12, Air India's Boeing 787-8 plane enroute to London Gatwick crashed into a building soon after take off from Ahmedabad, killing 260 people.