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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.<\/p>\n
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.<\/p>\n
Total expenditure rose by S$170 million, even as net fuel costs fell. The increase reflected the airline\u2019s capacity expansion and inflationary pressures across several cost components.<\/p>\n
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\u2019s losses.<\/p>\n
Air India\u2019s results were not part of the group\u2019s earnings a year earlier. Singapore Airlines began accounting for the Indian carrier\u2019s performance from December 2024, after completing the integration of its joint venture Vistara into Air India.<\/p>\n
Singapore Airlines holds a 25.1 per cent stake in the Indian carrier, in what it called a part of its “long-term multi-hub strategy” to have a stake in “one of the world’s largest and fastest-growing aviation markets”.<\/p>\n
“Despite the ongoing challenges, the SIA Group remains committed to working with its partner Tata Sons to support Air India\u2019s comprehensive multi-year transformation programme.”<\/p>\n
The airline announced an interim dividend of 5 Singapore cents per share and an interim special dividend of 3 Singapore cents apiece.<\/p>\n
It noted that demand for air travel remains resilient, supported by the year-end peak.<\/p>\n
“The airline industry continues to face challenges from geopolitical tensions, macroeconomic headwinds, inflationary cost pressures, and supply chain constraints,” it said.<\/p>\n
“The SIA Group remains well-positioned to navigate this environment, supported by its strong balance sheet, disciplined cost management, robust digital capabilities, and a highly talented and resilient workforce.”<\/p>\n<\/div>\n