PUBLISHED ONNovember 13, 2025 11:50 AMBYSean LerNational carrier Singapore Airlines (SIA) saw a nearly 68 per cent drop in the first half of 2025/2026, it reported after the markets closed on Thursday (Nov 13) .
This was due to lower interest income and share of losses from associate airline Air India.
Despite operating profit rising by 0.9 per cent to $803 million, net profit fell to $239 million for the first half of the financial year that ended on Sept 30, down from $742 million in the corresponding period last year.
"Interest income fell $103 million from lower cash balances and interest rate cuts, while the group's share of results of associated companies was $417 million lower year-on-year, notably reflecting Air India's losses which were not included in the previous year," SIA said.
Air India's financial results were previously not part of the group's results until December 2024, when Vistara was fully integrated into Air India.
SIA describes its 25.1 per cent stake in Air India as part of its "long-term multi-hub strategy", providing it with a stake in "one of the world's largest and fastest-growing aviation markets".
SIA said: "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."
Notwithstanding the lower profits, SIA's group revenue rose by 1.9 per cent
"The demand for air travel remained strong, with SIA and Scoot carrying 20.8 million passengers, 8 per cent more year-on-year," the airline said.
However, passenger yields slipped 2.9 per cent to 9.9 cents per revenue passenger-kilometre. SIA said this was due to increased competition.
Meanwhile, total expenditure rose by $170 million despite lower fuel prices owing to the airline's capacity expansion and inflationary pressure on several cost components.
In the second quarter, SIA added three Boeing 737-8s, bringing its passenger aircraft fleet to 145. Scoot also took delivery of three new aircraft, with the number of planes going up to 56.
The airline, nevertheless, is declaring an interim dividend of 5 cents per share for the half-year, payable on Dec 23.
It also declared a special dividend of 10 cents per share annually over three financial years — amounting to $0.9 billion — with the first payment of 3 cents per share to be paid on Dec 23.
SIA noted that demand for air travel remains resilient, supported by the year-end peak, adding that it will remain "proactive and agile" and adjust its passenger network and capacity to match changing demand patterns to maximise revenue opportunities.
"The airline industry continues to face challenges from geopolitical tensions, macroeconomic headwinds, inflationary cost pressures, and supply chain constraints.
"The SIA group remains well-positioned to navigate this environment, supported by its strong balance sheet, disciplined cost management, robust digital capabilities, and a highly talented and resilient workforce."
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