Singapore Airlines Ltd. (SIA) posted a sharp 82 percent decline in net income for the second quarter, marking its weakest quarterly performance in over three years. The carrier attributed the slump primarily to mounting losses at Air India Ltd., in which it holds a 25.1 percent stake. According to the airline’s financial report released Thursday, net income fell to S$52 million (about 40 million US dollars) in the three months ending September 30, down from the previous year’s robust performance. Meanwhile, revenue rose marginally by 2.2 percent to reach S$4.9 billion, supported by steady travel demand.

Despite the earnings slump, SIA’s operating profit increased by about 23 percent to S$398 million, suggesting underlying strength in its core airline operations. However, the group’s share of results from associated companies dropped by S$417 million year-on-year in the first half of the fiscal year, reflecting Air India’s continuing financial troubles. The Indian carrier, jointly owned by Tata Sons and Singapore Airlines, has been heavily impacted by ongoing restructuring challenges and a fatal crash earlier this year that further strained its resources.

Air India is currently pursuing a major turnaround strategy under the Tata Group, which plans to integrate the airline’s operations and modernize its fleet. Bloomberg News reported last month that Air India is seeking up to 100 billion rupees (around 1.1 billion US dollars) in additional funding from shareholders, including Tata Sons and Singapore Airlines, to stabilize operations. SIA reaffirmed its commitment to support Tata in these efforts, emphasizing the long-term potential of the partnership despite short-term financial pain.

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Singapore Airlines also noted that passenger yields — a measure of profitability per passenger per kilometer — declined by 3 percent to 9.8 Singaporean cents, although the rate of decline has slowed. The carrier said improved competition conditions and the shutdown of budget rival Jetstar Asia had helped cushion the fall. Expanding passenger capacity and steady demand led the SIA Group to fly a record 10.5 million passengers during the quarter, with both the flagship carrier and budget subsidiary Scoot recording high load factors.

Scoot, in particular, continues to be a bright spot, maintaining occupancy levels above 90 percent for six consecutive months through September. The budget airline has benefited from increased market share following the exit of Jetstar Asia earlier this year. While SIA acknowledged short-term profitability challenges due to global economic headwinds and geopolitical tensions, it maintained an optimistic outlook. The group expects resilient passenger demand and stable fuel costs to support performance in the second half of the financial year.

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