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

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.