ISTANBUL

Singapore Airlines posted Thursday an 82.1% year-on-year drop in its second quarter of financial year profit due to losses from its Air India stake and lower interest income.

The airline's net profit fell to 52 million Singapore dollars ($40 million) in the July-September period, from $223 million in the same period of last year, according to the firm's financial results released Thursday.

In the first half of the fiscal year, the net profit also dropped 67.8% to $183.8 million from the same period last year

On the other hand, the revenue for the July-September period increased 2.2% on an annual basis to $3.76 billion.

Due to lower cash balances and interest rate reductions, interest revenue decreased by $32.3 million in the second quarter. The share from associated companies, including Air India, took a $226.8 million hit in the period.

Singapore Airlines, also known as SIA, holds a 25.1% stake in Air India following its November 2024 merger with Vistara, co-owned with India’s Tata Sons. SIA began equity accounting for the airline from December 2024.

According to Bloomberg, following an accident in June that claimed the lives of over 240 passengers, Air India was reportedly requesting at least 100 billion rupees ($1.1 billion) in financial relief from SIA and Tata Sons. Air India was also a drag on the group's profits in the previous quarter.

“Despite the ongoing challenges, the SIA Group remains committed to working with its partner Tata Sons to support Air India’s comprehensive multi-year transformation programme,” a SIA statement said.

The airline said that as the third-quarter peak approaches, demand for air travel is still strong. However, it cautioned that market instability and changing trade regulations make air cargo developments unclear.

“The airline industry continues to face challenges from geopolitical tensions, macroeconomic headwinds, inflationary cost pressures, and supply chain constraints,” SIA said.