SIA shares fall as Air India losses weigh on earnings, but group stands by long-term investment

Singapore Airlines will continue investing in Air India and remains committed to its long-term transformation, said the airline’s chief executive, Goh Choon Phong, on 14 November.

- THE STRAITS TIMES/ANN

He was speaking at a briefing on the company’s first half results in the six months to 30 September.

Despite SIA reporting record revenues and achieving higher operating profit, which rose 09 per cent year on year to reach $803 million, net profit fell 67.8 per cent to $239 million over the period, due to lower interest income and its share of Air India’s losses.

This has raised concerns among analysts and investors about the carrier's ability to sustain its earnings momentum.

SIA shares were down around 2 per cent to $6.52 at closing on 14 November, compared with their previous close of $6.65.

The airline began accounting for associate Air India’s financial performance from December 2024, after Vistara was merged into the Indian flag carrier. But losses at Air India have since widened, exacerbated by a plane crash in June 2025 that killed 241 people on board in Ahmedabad.

When asked about its investment in Air India at the briefing, Mr Goh said: “All we say, and continue to say, is that we remain very committed to the transformation of Air India.”