Singapore Airlines posted its first quarterly net loss since 2022 despite higher revenue, dragged by soaring jet-fuel prices amid Middle East tensions and a higher share of losses from Air India.
Singapore Airlines is in discussions with Airbus and Boeing for the purchase of at least 50 of the industry's biggest jets as it plans the next phase of its growth from next decade, industry sources said.
Air India has weighed on Singapore Airlines' bottom line since the merger of Vistara and Air India in December 2024. Air India recorded a loss of SG$3.56 billion, or $2.8 billion, SIA's share of the loss amounted to SG$945.2 million.
Annual revenue climbed to a new high, but profit fell after three straight years of record earnings, adding uncertainty to an outlook already clouded by the Middle East conflict.
Shares in India's largest airline, IndiGo, jumped more than 11%. The ceasefire between the U.S. and Iran could ease pressure on India's aviation sector, which is grappling with high operational costs.
Singapore Airlines posted record quarterly revenue, buoyed by robust travel demand, but its net profit slumped due to the absence of a one-off gain that boosted the previous year's earnings.
Singapore Airlines' profit dropped 82% in its second quarter, dragged by losses from associate Air India and lower interest income.
Singapore Airlines' quarterly profit slumped as Air India losses and weaker interest income hit results. The carrier's stake in Air India continues to weigh on earnings as the Indian airline seeks major financial support.
Shares of Singapore Airlines (SIA) fell after the carrier reported a 59% decline in earnings. Singapore's flagship carrier also noted that the loss stemmed from Air India's financials.
The airline said tariffs and trade uncertainty cloud the outlook for the industry.
Singapore Airlines' Q2 FY25 net profit surged to SGD 1.6 billion, primarily due to a non-cash gain from the Air India-Vistara merger. Despite stable operating margins, Singapore Airlines faces increasing costs and declining unit revenues, making its investment appeal weak. I am upgrading the stock from sell to hold, as it trades at a significant discount to peers, but future earnings and cash flows lack stability.
Singapore Airlines has been ranked as one of the world's top airlines for decades. In this episode of Managing Asia, Christine Tan sat down for an exclusive interview with CEO Goh Choon Phong to discuss his strategy for staying ahead of increasing competition and ensuring SIA remains a world-class airline.