Singapore Airlines Group saw its second-quarter net profit impacted by loss-making associate Air India, despite seeing an increase in its revenues from strong travel demand.
For the three months ended 30 September, the airline group – comprising mainline operator SIA and low-cost unit Scoot – recorded a net profit of S$52 million ($40 million), down 82% year on year.
SIA Group began accounting for Air India’s financial performance in its earnings since December 2024, following the integration of its now-shuttered Vistara joint venture into Air India.
The move resulted in SIA Group acquiring a 25.1% stake in the Indian national carrier.
Air India is working through a corporate turnaround after being privatised under new owners Tata Group but has been hit a string of challenges in recent months, most significantly the crash of a Boeing 787 in June that killed 240 people.
Media reports also suggest that Air India is seeking financial assistance from SIA Group, though the latter has not publicly commented on the matter.
Nonetheless, SIA Group states: “Despite the ongoing challenges, the SIA Group remains committed to working with its partner Tata Sons to support Air India’s comprehensive multi-year transformation programme.”
It also reiterates its commitment to what it calls “one of the world’s largest and fastest-growing aviation markets”.
SIA Group reported an operating profit of S$398 million for the quarter, up 23% year on year. This was on the back of a 2% rise in group revenue to S$4.89 billion as the group saw a 5% increase in passenger traffic.
However, yields continued to decline amid increasing competition, slipping 3% year on year. SIA group notes travel demand remains “resilient” as the year-end peak travel period approaches.
“The group will remain proactive and agile, adjusting its passenger network and capacity to match evolving demand patterns and maximise revenue opportunities,” it adds.
