Strong travel demand couldn’t offset lower interest income, rising costs, and Air India’s heavy losses.
Singapore Airlines (SIA) has reported a sharp 68% plunge in half-year net profit, reflecting the volatile global aviation landscape and the financial drag from its newly consolidated stake in Air India.
Net Profit Plummets Despite Strong Passenger Growth
Singapore Airlines posted a net profit of S$239 million for the six months ending 30 September 2025, a steep decline from S$742 million in the same period last year. This result fell short of market expectations, even as operating profit inched up 0.9% to S$803 million and group revenue grew 1.9%.
Air India Losses Hit SIA Earnings
A major factor behind the earnings slump was SIA’s share of losses from Air India, amounting to S$417 million. These were included for the first time following the full integration of Vistara into Air India in December 2024. SIA holds a 25.1% stake in the Indian carrier as part of its long-term multi-hub strategy, giving it access to one of the world’s fastest-growing aviation markets.
Lower Interest Income and Higher Costs Add Pressure
Interest income dropped by S$103 million due to smaller cash balances and interest rate cuts. Meanwhile, total expenditure rose by S$170 million, driven by fleet expansion and persistent inflationary pressures despite lower net fuel costs. The carrier added three Boeing 737-8 aircraft, bringing its fleet to 145, while Scoot expanded to 56 aircraft.
Competition Softens Yields
Although SIA and Scoot carried 20.8 million passengers—an 8% increase—passenger yields slipped 2.9% to 9.9 cents per revenue passenger-kilometre. The carrier attributed this decline to intensifying competition across key regional markets.
Dividends Remain Intact
Despite the lower profit, SIA declared an interim dividend of 5 Singapore cents per share and an interim special dividend of 3 cents. A broader special dividend of 10 cents per share annually over three years, totalling S$0.9 billion, begins with the first payout on 23 December 2025.
Outlook: Resilient Demand but Persistent Headwinds
SIA remains cautiously optimistic, citing strong travel demand supported by year-end peaks. However, it highlighted ongoing risks from geopolitical tensions, macroeconomic volatility, inflation, and supply chain constraints. The airline emphasised that its strong balance sheet, digital capabilities, and experienced workforce position it well to navigate these challenges.
SIA’s sharp profit decline underscores the complexity of operating in today’s aviation environment, where rising costs and associate losses can outweigh strong passenger demand. For travellers, businesses, and regional partners—including Indonesia and Singapore—these financial shifts signal evolving competitive dynamics and the need for airlines to remain agile and resilient.
Sources: CNA (2025) , AsiaOne (2025)
Keywords: Singapore Airlines Profit, Half-Year Earnings, Air India Losses, Aviation Market, SIA Dividend
