Singapore Airlines Group's Profit Falls Nearly 59 Per Cent In Q1 Due To THIS Reason
The decline in profit was mainly due to losses from associated companies, especially Air India, and lower interest income. Singapore Airlines holds a 25.1 per cent stake in Air India, which has been facing financial and operational troubles.
In a statement issued on Monday, Singapore Airlines said its total revenue for the quarter rose slightly by 1.5 per cent to SGD 4.79 billion. However, its net profit fell sharply by 58.8 per cent, mostly due to reduced operating profit and lower interest income.
The airline said interest income dropped because of lower cash balances and falling interest rates. The group also pointed out that it recorded a share of losses from associated companies this time, unlike the same quarter last year when it saw profits.
The losses from Air India were a major contributor. This is the first time Air India's financial performance has been reflected in Singapore Airlines Group's results, following the full merger of Vistara with Air India in December 2024.
Despite the profit decline, Singapore Airlines said demand for air travel remained strong during the summer season in most regions. However, the airline also warned that the global aviation industry is still facing many challenges, including geopolitical tensions, economic instability, changing market trends, and supply chain issues.
The airline added that it will remain flexible and responsive to changing demand. Air India has recently seen multiple setbacks. On June 12, an Air India Boeing 787-8 aircraft flying to London Gatwick crashed into a building shortly after taking off from Ahmedabad. The tragic accident killed 260 people, further adding to the airline's ongoing troubles.
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