Singapore Airlines posted a steep 82% drop in earnings for the second quarter of its fiscal year on Thursday, pressured by losses stemming from its investment in Air India and a dip in interest income.
For the quarter ending in September, the carrier reported revenue of SGD 4.89 billion , falling short of LSEG SmartEstimates’ consensus of SGD 4.94 billion. Net profit came in at SGD 52 million, a substantial miss compared to analysts’ expectations of SGD 181.47 million.
Earnings for the first half of the fiscal year mirrored this weakness, with net profit tumbling by 67.8% to SGD 239 million from the previous year, according to the company’s latest financial disclosures.
The earnings setback was largely attributed to the airline’s 25.1% holding in Air India, acquired following the November 2024 merger with Vistara, a joint venture with Tata Sons. Singapore Airlines began equity accounting for Air India starting December 2024.
According to Bloomberg, Air India continued to weigh down group results last quarter and is reportedly seeking financial assistance of at least INR 100 billion from Singapore Airlines and Tata Sons following a fatal crash in June in which over 240 passengers lost their lives.
The report added that this funding would support critical upgrades across Air India’s systems, bolster engineering and maintenance, and that contributions would be proportional to ownership stakes.
Meanwhile, Singapore Airlines has intensified efforts to broaden its alliances. In September, it introduced new codeshare flights with Vietnam Airlines, bolstering links across Southeast Asia’s rapidly expanding markets.
In October, the airline also deepened its collaboration with Lufthansa Group, bringing Brussels Airlines into the fold and enhancing routes between Europe and Asia-Pacific.
