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Singapore Airlines earnings sink 82% in second quarter, well below forecasts on Air India drag
An Airbus A350-941 from Singapore Airlines is preparing to take off on the runway at Barcelona-El Prat Airport in Barcelona, Spain, on May 1, 2024.
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Singapore Airlines on Thursday reported an 82% plunge in second-quarter earnings, weighed down by losses from its stake in Air India and lower interest income.
Here’s how the carrier performed in the three months ended September compared with LSEG SmartEstimates, which are weighted toward forecasts from analysts who are more consistently accurate:
- Revenue: 4.89 billion Singapore dollars ($3.76 billion) vs. 4.94 billion Singapore dollars expected
- Net profit: 52 million Singapore dollars vs. 181.47 million Singapore dollars expected
Net profit of the city-state’s flag carrier also fell to 239 million Singapore dollars in the first half of the fiscal year, down 67.8% from a year earlier, according to the company’s earnings report.
The results were hit by Air India, in which Singapore Airlines holds a 25.1% stake following its November 2024 merger with Vistara, co-owned with India’s Tata Sons. SIA began equity accounting for the airline from December 2024.
Air India was also a drag on the group’s results in the last quarter and was reportedly seeking at least 100 billion rupees ($1.1 billion) in financial aid from Singapore Airlines and Tata Sons after a June crash that killed more than 240 passengers, according to Bloomberg.
Any financial support, which would be used to overhaul Air India’s systems and services, develop in-house engineering and maintenance departments, would be proportional to ownership, Bloomberg reported, citing people familiar with the matter.
Separately, Singapore Airlines has been expanding its commercial partnerships. The carrier launched new codeshare services with Vietnam Airlines in September, expanding connectivity across both networks and deepening its foothold in fast-growing Southeast Asian routes.
In October, it deepened its joint venture with the Lufthansa Group by adding Brussels Airlines, improving routes between Europe and the Asia-Pacific region.
