• Singapore Airlines reported a nearly 68% drop in half-year net profit, totaling S$239 million.
• Losses from Air India and increasing operational costs significantly impacted SIA's financial performance.
• Despite challenges, passenger demand remains strong, and SIA announced a return of capital to investors.

Singapore Airlines has announced a substantial 68% drop in its half-year net profit, reporting S$239 million (US$184.67 million) compared to S$742 million a year earlier. This decline is attributed to losses from its investment in Air India, alongside reduced interest income and heightened operational costs due to inflation and network expansion. The airline's interest income declined by S$103 million, reflecting reduced cash balances and interest rate cuts, while the share of results from associated companies fell sharply by S$417 million predominantly because of Air India's losses, which were accounted for from December 2024 onwards after its integration with Vistara, a joint venture previously held by Singapore Airlines, according to Channel News Asia, India Times, and South China Morning Post.

In a detailed report on its financial situation, Singapore Airlines highlighted that its total expenditure rose by S$170 million, despite a reduction in net fuel costs. This increase in costs was attributed to inflationary pressures and ongoing capacity expansions. With strong passenger demand reported, the airline carried 20.8 million passengers, marking an 8% increase year-on-year, thereby indicating resilience in the air travel market, as detailed in reports by Channel News Asia, India Times, and South China Morning Post.

The struggle was compounded by Air India’s substantial financial losses and the need for a significant capital injection estimated at around 100 billion rupees (US$1.1 billion). However, Singapore Airlines affirmed its commitment to assist Air India's transformation plans, demonstrating confidence despite the challenges faced in both the Indian aviation market and broader economic context. The airline's revenue rose 1.9% to a record S$9.68 billion for the first half, indicating an effort to maintain financial stability amidst increasing competition and economic pressures, according to Channel News Asia, India Times, and South China Morning Post.