SIA's QI profit falls 59%; airline group sees volatile times ahead

Singapore Airlines saw its earnings slide 59 per cent in the first quarter of its latest financial year, it announced on July 28 after trading hours.

- Sue-Ann Tan

This was due to lower interest income and the share of losses of associates, SIA said. Net profit dropped to $186 million for the first quarter in the 2025/2026 financial year that ended June 30, down from $452 million in the corresponding period a year ago.

"In addition to the lower operating profit, the reduction in net profit was largely attributable to a lower interest income on the back of lower cash balances and interest rate cuts, and the group recording a share of losses of associated companies compared to a share of profits for the same quarter last year," SIA said.

This loss was from Air India's financial results, which were not part of the group's results for the same quarter in 2024. SIA started equity accounting for Air India's financial performance from December 2024 following the full integration of Vistara into Air India.

Before the merger, Vistara was jointly owned by Tata Sons and SIA. After the merger, SIA holds a 25.1 per cent stake in the enlarged Air India, allowing it to participate directly in the fast-expanding Indian aviation market.

SIA's operating profit fell around 14 per cent year on year, to $405 million.