Singapore Airlines earnings sink 82% in second quarter, well below forecasts on Air India drag

reported an 82% drop on Thursday second quarter profit It missed estimates by a large margin and was weighed down by losses from its shares in Air India and lower interest income.

Compared to LSEG SmartEstimates, which are weighted by analysts’ estimates, which are more consistently accurate, here’s how the carrier performed in the three months ending in September:

• Revenue: 4.89 billion Singapore dollars ($3.76 billion) vs. 4.94 billion Singapore dollars expected
• Net profit: S$52 million versus expectations of S$181.47 million

The city-state’s flag carrier’s net profit also fell 67.8% year-on-year to S$239 million in the first half of the financial year, according to the company’s earnings report.

Interest income fell by S$42 million in the second quarter due to declining cash balances and interest rate cuts, while its subsidiaries, including Air India, recorded a loss of S$295 million in the same period.

Singapore Airlines, also known as SIA, acquired a 25.1% stake in Air India following its merger with Vistara, co-owned by India’s Tata Sons, in November 2024. SIA commenced equity accounting for the airline from December 2024.

“Despite the ongoing challenges, SIA Group is committed to working with its partner Tata Sons to support Air India’s comprehensive multi-year transformation program,” SIA said in a statement after the earnings release. he said.

Air India has also put a dent in the group’s results in the last quarter and has reportedly sought financial assistance of at least 100 billion rupees ($1.1 billion) from SIA and Tata Sons following a crash in June that killed more than 240 passengers. According to Bloomberg.

Any financial support to overhaul Air India’s systems and services and improve its in-house engineering and maintenance departments will be commensurate with ownership, Bloomberg reported, citing people familiar with the matter.

SIA is also expanding its commercial partnerships. The carrier launched new codeshare services with Vietnam Airlines in September, expanding connectivity on both networks and deepening its presence on fast-growing Southeast Asian routes.

It deepened its joint venture in October. Lufthansa Group By adding Brussels Airlines, we are improving routes between Europe and the Asia-Pacific region.

While SIA said demand for air travel remained resilient heading into the third quarter, supported by a year-end peak, the carrier warned that its air cargo business remained “uncertain due to change in trade policies and market dynamics”.

“The airline industry continues to face challenges from geopolitical tensions, macroeconomic volatility, inflationary cost pressures and supply chain constraints,” SIA said.