Singapore Airlines posted a nearly 68 per cent drop in half-year net profit on Thursday (Nov 13), hurt by intensifying competition, lower interest income and losses from associate airline Air India.
The country’s flag carrier said its half-year net profit came in at S$239 million (US$184.67 million) for the six months ended Sep 30, compared with S$742 million a year earlier and a Visible Alpha consensus estimate of S$341.9 million.
Total expenditure rose by S$170 million, even as net fuel costs fell. The increase reflected the airline’s capacity expansion and inflationary pressures across several cost components.
The company’s interest income was also dented by S$103 million due to smaller cash balances and interest rate cuts, while share of results from associated companies plunged S$417 million, largely because of Air India’s losses.
