Singapore Airlines on Thursday reported a sharp fall in first-half profit, hit by losses at its Indian associate Air India, higher costs and intensifying competition.
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The airline’s profit slid steeply in the second quarter to S$52 million (US$40.18 million) from S$186 million in the first quarter, highlighting Air India’s drag on performance.
Singapore Airlines began accounting for Air India’s earnings in December 2024 after the integration of joint venture Vistara into Air India. The Singapore carrier has a 25.1 per cent stake in the Indian airline.
Air India is still reeling from a fatal crash earlier this year and is seeking at least 100 billion rupees (US$1.1 billion) in financial support from its owners, Tata Sons and Singapore Air, Bloomberg News reported last month. Singapore Airlines reiterated its commitment to collaborating with Tata Sons on Air India’s turnaround plan.
Passenger demand remained strong and fuel costs fell, even as competition in key markets squeezed yields.
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Singapore’s flag carrier sought to keep investors onside with a capital return plan and a confident outlook for travel demand heading into the year-end rush.