Archive · 13 Nov 2025
Singapore Airlines Profit Declines Amid Air India Losses
Singapore Airlines (SIA) is like a big company that owns part of another airline called Air India.
Even though SIA's own flights are doing really well, carrying lots of people and making more money from tickets, Air India is losing a lot of money.
This makes SIA's total profit look much smaller, hitting a low point in the last few years.
Imagine if your lemonade stand was doing great, but your friend's ice cream stand next door was losing money, and you had to share the losses.
SIA is still planning to give some money back to its owners, which is a good sign for its own business.
They are also working with Air India's main owner to help fix that airline.
More people are flying with SIA and its budget airline Scoot than ever before, with many flights being full.
Singapore Airlines' net income fell 82% to S$52 million in Q2 FY26, the lowest in three and a half years, largely due to losses at associate Air India.
SIA's core operating profit increased by 23% to S$398 million, reflecting strong demand and improved yields.
The airline plans to pay a special dividend of approximately S$900 million over three years, signaling financial stability in its core operations.
Air India's financial difficulties contributed significantly to SIA's consolidated results, with SIA's share of associate results down S$417 million year-on-year in the first half.
SIA Group carried a record 10.5 million passengers in the quarter, with both SIA and Scoot seeing higher load factors and increased capacity.
- Who
- Singapore Airlines (SIA) and its associate Air India
- What
- Singapore Airlines reported a significant drop in net income to a three-and-a-half-year low, primarily due to losses incurred by its associate Air India, despite a rise in SIA's own operating profit and record passenger numbers.
- When
- The second quarter of the fiscal year 2026, ending September 30, 2025.
- Where
- Singapore Airlines operates globally, with the financial results reflecting losses from its associate Air India, based in India.
- Why
- The decline in SIA's net income is largely attributed to the financial struggles and losses at Air India, while SIA's core operations benefited from strong passenger demand, reduced competition from Jetstar Asia's shutdown, and stable expenses.
Singapore Airlines' Core Performance
Challenges and Losses at Air India
Financial Results
Singapore Airlines' Core Performance
Singapore Airlines (SIA) reported a 23% increase in its core operating profit to S$398 million, driven by strong passenger demand and improved yields. The airline also maintained stable expenses and saw a decline in fuel costs.
Challenges and Losses at Air India
SIA's consolidated net income plummeted 82% to S$52 million, its lowest in three and a half years, primarily due to significant losses from its associate, Air India. SIA's share of associate results was S$417 million lower year-on-year in the first half, reflecting Air India's financial difficulties.
Operational Performance
Singapore Airlines' Core Performance
SIA Group achieved a record 10.5 million passengers in the quarter, with both SIA and its budget arm Scoot experiencing high load factors and increased capacity due to strong demand. Scoot has maintained over 90% load factors for six consecutive months.
Challenges and Losses at Air India
Air India is reportedly seeking substantial financial support from its owners, Tata Sons and Singapore Air, amounting to at least $1.1 billion, indicating severe financial distress and ongoing operational challenges for the Indian carrier.
Market Position and Outlook
Singapore Airlines' Core Performance
SIA's passenger yields fell 3%, but the decline is moderating, suggesting an improving competitive outlook, especially following the shutdown of rival Jetstar Asia. SIA is optimistic about resilient demand heading into the next quarter.
Challenges and Losses at Air India
Despite SIA's commitment to supporting Air India's turnaround plan, the associate's financial struggles continue to significantly impact SIA's overall profitability and bottom line.
- Company
- Singapore Airlines Ltd (SIA)
- Associate Company
- Air India Ltd (SIA Group stake: 25.1%)
- Reporting Period
- Second quarter ended September 30, 2025 (Q2 FY26)
- Net Income (Q2 FY26)
- S$52 million (down 82% year-on-year)
- Revenue (Q2 FY26)
- S$4.9 billion (up 2.2% year-on-year)
- Operating Profit (SIA Core, Q2 FY26)
- S$398 million (up 23% year-on-year)
- Share of Results of Associates (First Half FY26)
- S$417 million lower year-on-year
- Planned Special Dividend
- 10 Singaporean cents per share annually over three years (total ~S$900 million)
Sources
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