Air India Losses Drag Singapore Airlines Net Profit Down 68%
Singapore Airlines Group’s net profit plunged 67.8% to SGD 239 million for the first half of the year, significantly impacted by losses from its associate company, Air India.
Key Takeaways
- Net profit fell to SGD 239 million, a drop of 67.8%.
- Losses from the Group’s 25.1% stake in Air India were a major contributing factor.
- Robust operating profit of SGD 803 million was driven by strong passenger demand.
Financial Performance Details
The Group’s net profit fell by $503 million year-on-year. This sharp decline was attributed to two primary factors: a $103 million drop in interest income due to lower cash balances and interest rate cuts, and a $417 million lower share of results from associated companies.
The results “notably reflect[ed] Air India’s losses”. These figures were newly incorporated into the accounts as the Group only began equity accounting for Air India from December 2024, following the full integration of Vistara.
Ongoing Commitment to Air India
Despite the financial drag, the Singapore Airlines Group reaffirmed its support for the Tata Sons-owned carrier. A statement reiterated, “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.”
Additional Challenges for Air India
Separately, Air India is also facing an enquiry after a Boeing 787 aircraft crashed in Ahmedabad on June 12.
