Singapore Airlines delivers strong first half performance but net profits drop

The Singapore Airlines Group has reported a sharp fall in first-half profit, hit by losses at its Indian associate Air India, higher costs, and intensifying competition. The airline’s net profits dropped steeply in the second quarter to $40.18 million from $139.5 million in the first quarter, highlighting Air India’s drag on performance.

Singapore Airlines began accounting for Air India’s earnings in December 2024 after the integration of joint venture Vistara into Air India. The Singapore airline has a 25.1% stake in the Indian carrier. Passenger demand remained strong and fuel costs fell, even as competition in key markets squeezed yields.

Group revenue rose by $178 million (+1.9%) from the year before to a first-half record of $9,675 million. The demand for air travel remained strong, with both Singapore Airlines and Scoot carrying 20.8 million passengers, an 8.0% increase year-over-year. Group passenger load factor (PLF) increased by 1.3 percentage points to 87.7%, as traffic growth of 4.6% exceeded capacity expansion of 3.0%.

Passenger yields, however, declined 2.9% to 7.4 US cents per revenue passenger-kilometre, driven by increased competition.

Kittikun Yoksap / ShutterstockThe Group said that expenditure rose by $170 million (+2.0%) to $8,872 million, as the increase in non-fuel expenditure (+$353 million; +5.9%) outpaced the reduction in net fuel cost (-$183 million; -6.7%). The higher non-fuel expenditure reflected the 2.9% expansion in overall capacity and inflationary pressure on several cost components.

Net fuel cost fell 6.7% (-$183 million) largely due to the 12.7% contraction in fuel prices (-$370 million) and partially offset by higher volumes uplifted (+$130 million) and a fuel hedging loss this year compared to a gain last year (+$143 million). Consequently, the Group recorded an operating profit of $803 million in the first half of FY2025/26, marginally higher versus 2024 (+$7 million; +0.9%). The Group’s net profit for the first half fell by $503 million (-67.8%) to $239 million.

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.

The Group began equity accounting for Air India’s financial performance from December 2024, following the full integration of Vistara into Air India. The Indian airline is also reportedly seeking financial aid from the Group after a plane crash that killed 240 people in June 2025.

Indian Ministry of Civil AviationSIA’s earnings, or net profit, fell 67.8% year on year to $239 million in the first half of its financial year ending on 30 September 2025, due to lower interest income and its share of Air India’s losses.

The airline’s revenue rose in the six months to Sept 30 by 1.9% from the year before, reaching a first-half record of $9.7 billion as demand for air travel continued to stay resilient despite challenges from shifting trade policies. The first interim special dividend of three cents per share will be paid on 23 December 2025 to shareholders.

“Barring unforeseen circumstances and subject to the requisite shareholder approval, the company expects to pay special dividends amounting to 10 cents per share in each of the subsequent two financial years,” Singapore Airlines Group said in a statement.

Revenue from SIA’s cargo arm dropped in the first half. While cargo loads grew by 1.2%, it was less than the capacity expansion of 2.8%. “The cargo business remains uncertain, with yields under pressure as airlines shift capacity away from the United States to other routes despite rising volumes,” the airline said.

KeleX Pictures / ShutterstockAs of 30 September 2025, the Group’s operating fleet comprised 208 passenger and freighter aircraft with an average age of seven years and eight months. In the second quarter, Singapore Airlines added three Boeing 737-8s, bringing its operating fleet to 145 passenger aircraft and seven freighters. It also retired its last 737-800 from service.

Scoot took delivery of two Airbus A320neos, one Boeing 787-8, and one Embraer E190-E2, bringing its fleet to 56 passenger aircraft. The Group has a further 67 aircraft on order.

For the Northern Winter 2025/26 operating season (26 October 2025 to 28 March 2026), Singapore Airlines plans to increase frequencies to destinations such as Auckland, Busan, Da Nang, Kathmandu, Kochi, Phuket, Siem Reap, and Tokyo (Haneda), to meet the higher demand for air travel during the year-end peak.

The airline will also operate supplementary services to Chitose (Sapporo) (November 2025 to January 2026), Christchurch (November 2025 to February 2026), and Taipei (February 2026 to March 2026).

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