Singapore Airlines is facing renewed pressure on its latest earnings as losses from Air India continue to affect the group. The numbers show a sharp fall, raising concerns about whether the carrier’s partnership with Air India is weighing it down.
Profit Falls Sharply in Second Quarter
The airline reported an 82 percent drop in its second-quarter profit. Its net earnings for the first half fell to 239 million Singapore dollars. This signals a 67.8 percent year-on-year decline and has raised alarms among analysts.
Analysts Link Decline to Multiple Factors
Experts say weaker interest income, yield pressure, and losses from associated companies contributed to the fall. Air India recorded a 295 million Singapore dollar loss during the quarter, which significantly impacted the group.
Dividends Announced Despite Decline
Despite the slump, Singapore Airlines announced a special dividend of 10 Singapore cents per share for the next three financial years. The company also confirmed an interim dividend to be paid in December.
Air India Restructuring May Take Years
Analysts like Tabitha Foo from DBS Bank stated that Air India’s restructuring is extensive. They believe meaningful recovery could take years, which may influence Singapore Airlines performance through FY26 and FY27.
Concerns Over Air India’s Losses
Morningstar analysts pointed out the need for clarity on whether Air India’s losses come mainly from fleet ramp-up costs or from deeper structural issues. This uncertainty adds more pressure on the group’s future outlook.
Broader Challenges Add to the Pressure
Singapore Airlines has also highlighted ongoing hurdles such as volatile cargo markets and geopolitical risks. While the long-term investment in Air India might succeed eventually, the financial strain is clearly affecting the group today.
