Singapore Airlines’ profit drops 68% as Air India losses mount

Singapore Airlines (SIA) reported a sharp drop in half-year profit after deep losses at Air India, lower interest income, and tougher competition cut earnings.

The group said net profit fell 67.8% to $239 million in the first half of FY2025, down from $742 million a year earlier. It began recording Air India’s results after Vistara, where it held a 49% stake, merged into Air India in late 2024. SIA now owns 25% of the Indian carrier.

SIA said its share of results from associated companies fell $417 million year-on-year, driven largely by Air India’s losses. In the second quarter alone, the group absorbed $295 million from Air India and lost another $103 million in interest income.

Quarterly net profit fell 82.1% to $52 million, down from $290 million a year earlier.

“Despite the ongoing challenges, the SIA Group remains committed to working with Tata Sons to support Air India’s multi-year transformation programme,” the airline said.

Air India posted a $1.15 billion loss for FY2025. Indian regulators also cited over 50 safety violations, including seven marked “most severe,” following an audit after the June Flight 171 incident.

Strong travel demand, but yields slide

SIA recorded record first-half revenue of $9.675 billion, up 1.9% year-on-year. Passenger numbers rose 8% to 20.8 million across SIA and budget arm Scoot, pushing load factor to 87.7%.

But stronger competition pushed yields down 3%, even as fuel costs fell. Cargo revenue also dipped 2% as a 1.2% rise in load factor failed to match a 2.8% rise in capacity. SIA said the cargo market remains “uncertain” as airlines shift capacity from the United States to other regions.

Transformation Push at Air India

Air India is working through a major overhaul backed by Tata Group and SIA. Aviation analyst Lorraine Tan told CNBC that part of the losses may come from rapid fleet expansion.
“If losses are depreciation-driven and Air India is at EBITDA breakeven, that’s fine,” she said.

Air India is reported to be seeking over $1 billion in new support from Tata and SIA to upgrade systems and improve maintenance.

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