Singapore Airlines Profit Plunges on Air India Losses

By Kimberley Kao

Singapore Airlines' profit dropped 82% in its second quarter, dragged by losses from associate Air India and lower interest income.

The city-state's flag carrier said Thursday that net profit for the three months ended September was 52.4 million Singapore dollars, equivalent to US$40.2 million, down sharply from S$290.3 million a year earlier.

The decline was partly due to Air India's losses, it said. Air India's results weren't part of the Singapore carrier's earnings last year.

Operating profit rose 22.5% to S$398 million due to healthy passenger demand and lower fuel prices, mitigating a rise in nonfuel unit costs resulting from inflationary pressures, the airline said.

Revenue rose 2.2% to S$4.88 billion, helped by a 5.1% increase in passenger traffic that offset weaker yields due to heightened competition.

Cargo load factor fell by 1.0 percentage point to 56.2%.

"The air cargo segment remains uncertain amid shifting trade policies and market dynamics," the airline said. "While cargo volumes are growing on the back of the group's diversified network and verticals, yields remain under pressure as airlines redeploy cargo capacity" from the U.S. to other lanes, it said.

Singapore Airlines proposed a S$900 million capital return plan for shareholders, comprising a special dividend package of S$0.10 a share to be paid annually over three financial years.

The first tranche of this payment of S$0.03 a share will be paid in December, in addition to the interim dividend of S$0.05 declared.

"The airline industry continues to face challenges from geopolitical tensions, macroeconomic headwinds, inflationary cost pressures and supply chain constraints," Singapore Airlines said.

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

November 13, 2025 05:27 ET (10:27 GMT)