Air India Woes Hit Singapore Airlines Hard: Profits Plummet Amidst Turnaround Push!

Transportation

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Updated on 13 Nov 2025, 10:36 am

Singapore Airlines Limited (SIA) reported a sharp 82% decline in net income to S$52 million for the second quarter, marking its lowest profit in three and a half years. This downturn was significantly influenced by ongoing challenges at Air India Limited, in which SIA holds a 25.1% stake. While SIA's revenue increased by 2.2% to S$4.9 billion and operating profit rose by approximately 23% to S$398 million, its share of results from associated companies was S$417 million lower year-on-year in the first half, directly reflecting Air India's financial struggles. Air India is reportedly seeking at least 100 billion rupees (approximately $1.1 billion) in financial aid from its majority owner, Tata Sons, and SIA. Both companies have expressed commitment to supporting Air India's turnaround. Despite the net profit decline and broader economic headwinds, SIA maintained an optimistic outlook, citing resilient air travel demand and record passenger numbers for the quarter. The airline also benefited from stable expenses and lower fuel costs. Impact: This news has a significant impact on the Indian aviation sector as Air India is a major national carrier. The financial health and turnaround progress of Air India directly affect its operational stability, customer service, and future expansion plans, influencing investor confidence in the sector. Rating: 8/10 Difficult terms: Net income: The profit remaining after all expenses and taxes have been deducted from revenue. Operating profit: Profit made from ordinary business activities before interest and taxes. Associated companies: Companies in which an investor has significant influence but not control, usually holding between 20% and 50% of the voting stock. Passenger yields: A measure of an airline's profitability per passenger kilometer flown. Load factors: The percentage of capacity (seats or cargo space) that is filled by passengers or freight.