Singapore Airlines’ September-quarter profit declined 82% year-on-year as losses at Air India, in which it holds a 25.1% stake, wiped out much of the group’s earnings despite steady revenue growth.
Net income for the three months ended September fell to S$52 million, as the carrier absorbed the full impact of Air India’s weak finances following the start of equity accounting from December 2024, following the full integration of Vistara into Air India. SIA said its share of results from associated companies was S$417 million lower in the first half, almost entirely due to Air India’s losses.
However, the investment in Air India is central to SIA’s long-term multi-hub strategy, as it offers essential access to one of the world’s fastest-growing aviation markets. Air India’s financial pressures have intensified despite rising traffic and capacity, with consolidated losses surging 48% in FY25 to Rs 10,859 crore, according to disclosures from Tata Sons. That made it the largest loss-maker across all Tata Group companies for the year.
The airline has also been hit by the aftermath of a deadly June crash that killed 260 people, one of the worst air disasters. It is now seeking at least Rs 10,000 crore in financial support from Tata Sons and Singapore Airlines, according to reports. During FY25, the partners jointly injected Rs 9,558 crore into the carrier to meet capital expenditure needs, with SIA contributing a larger share. Air India is in the early stages of a five-year transformation programme involving fleet upgrades, operational integration and service improvements, a process SIA said it remains committed to support.
Despite the strain from Air India, SIA said that underlying air-travel demand remains firm heading into the third quarter. The group flew a record 10.5 million passengers in the September quarter, with both its flagship brand and budget arm Scoot operating fuller flights. Scoot, in particular, continued to benefit from the shutdown of rival Jetstar Asia in July, keeping its load factors above 90% for six straight months.
Leaving out the Air India drag, SIA’s core performance showed some resilience. Quarterly revenue rose 2.2% to S$4.9 billion, supported by steady passenger growth even as yields slipped 3% to 9.8 Singapore cents per kilometre. Operating profit increased almost 23% to S$398 million as fuel costs eased and expenses stayed broadly flat.