Key Highlights: - Singapore Airlines reported an 82% drop in Q2 profit, significantly below market expectations, due to losses from its stake in Air India and declining interest income. - Air India continues to weigh on earnings as it seeks substantial financial support, with Singapore Airlines holding a 25.1% stake in the carrier. - The airline is expanding its commercial partnerships, including new codeshare agreements with Vietnam Airlines and expanded cooperation with Lufthansa Group.

Singapore Airlines announced on Thursday, November 13, that its second-quarter profit plummeted 82%, falling short of analyst forecasts. The decline was driven by losses from its investment in Air India and reduced interest income.

Financial Performance (Q2, ended September): - Revenue: SGD 4.89 billion (~USD 3.76 billion), below expectations of SGD 4.94 billion. - Net Profit: SGD 52 million, far lower than the projected SGD 181.47 million.

For the first half of the fiscal year, net profit dropped 67.8% year-on-year to SGD 239 million. The airline attributed the Q2 profit slump to a SGD 42 million decline in interest income (due to lower cash balances and interest rates) and a combined SGD 295 million loss from associates, including Air India.

Singapore Airlines acquired its 25.1% stake in Air India through the merger with Vistara (a joint venture with Tata Group) in November 2024 and began equity accounting for the carrier in December 2024. The company stated it remains committed to supporting Air India's multi-year transformation plan despite ongoing challenges.

Air India has been a persistent drag on Singapore Airlines' performance. Following a fatal crash in June that killed over 240 passengers, Air India is reportedly seeking at least INR 100 billion (~USD 1.1 billion) in financial support from Singapore Airlines and Tata Group. Bloomberg sources indicate these funds would support system upgrades and maintenance capabilities, with contributions proportional to shareholding.

Meanwhile, Singapore Airlines is actively expanding its commercial network: - In September, it launched new codeshare services with Vietnam Airlines to strengthen its Southeast Asian routes. - In October, it deepened its joint venture with Lufthansa Group by adding Brussels Airlines, optimizing connectivity between Europe and Asia-Pacific.

While noting resilient travel demand heading into the peak Q3 season, the airline cautioned about cargo market uncertainty due to trade policy shifts and volatility. It cited ongoing industry challenges, including geopolitical tensions, macroeconomic headwinds, inflationary cost pressures, and supply chain constraints.