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Singapore Airlines’ First-Half Net Profit Fell 67.8% as Air India Losses Weighed

Singapore Airlines’ first-half FY2025/26 net profit dropped 67.8% to S$239 million, even as revenue and operating profit rose. Air India associate losses and lower interest income explain much of the gap.
From TheFinanceBase Team3 min to read
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Singapore Airlines Group’s unaudited net profit fell 67.8% to S$239 million in the first half of FY2025/26, the six months ended 30 September 2025. The drop was not matched by a similar fall in operating performance: revenue rose 1.9% to S$9.675 billion and operating profit edged up 0.9% to S$803 million. SIA attributed the lower net profit mainly to reduced interest income and a year-on-year decline in its share of associate results, notably reflecting Air India losses. SIA’s 13 November 2025 results release reports all figures in Singapore dollars.

What changed in SIA’s first-half results?

The headline decline is in net profit, which measures what remains after operating costs and other income, expenses, taxes and accounting items. SIA Group reported S$239 million for the six months ended 30 September 2025, compared with S$742 million a year earlier—a decrease of S$503 million, or 67.8%.

Measure First half FY2025/26 Year-on-year change
Revenue S$9.675 billion Up 1.9%
Operating profit S$803 million Up 0.9%
Net profit S$239 million Down S$503 million, or 67.8%

Figures are from Singapore Airlines Group’s unaudited first-half FY2025/26 results, announced 13 November 2025. Monetary amounts are Singapore dollars; figures may not sum exactly because of rounding. Source: SIA release.

Why did net profit fall while operating profit held up?

The main explanation is that the deterioration occurred largely outside the operating-profit line. SIA reported a S$103 million reduction in interest income, which it attributed to lower cash balances and interest-rate cuts. Its share of results from associated companies was S$417 million lower year on year, with Air India losses a notable factor. These changes weighed on net profit even though operating profit was slightly higher.

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Air India changed the comparison

SIA began equity accounting for Air India’s financial performance from December 2024, after Vistara was fully integrated into Air India. As a result, Air India’s performance was not included on the same basis in the prior-year first half. The S$417 million year-on-year decline in associate results therefore reflects both Air India’s losses and a changed comparison period; it should not be read as a fully like-for-like measure of Air India’s deterioration.

At the time, CNA reported that SIA held a 25.1% stake in Air India. The outlet also reported SIA management’s commitment to work with Tata Sons on Air India’s multi-year transformation programme; that is the company’s stated position, not evidence that the programme will deliver profitability on a particular schedule. CNA’s contemporaneous report.

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How later results put the half-year decline in context

SIA’s audited FY2025/26 results, announced in 2026, showed full-year net profit of S$1.184 billion, down 57.4%, while operating profit rose 39.0% to S$2.375 billion. SIA said the annual net-profit decline primarily reflected the absence of a S$1.098 billion non-cash accounting gain recorded in November 2024 when the Air India–Vistara merger was completed, as well as an S$846 million swing in associate results to a loss. For the year, SIA recognized its share of Air India’s full-year losses, compared with four months in the previous year. SIA’s FY2025/26 annual report.

The full-year figures show why a net-profit comparison needs context: reported earnings can move sharply because of non-cash transactions and changes in the period over which an associate’s results are recognized. They do not alter the reported first-half figures, but they help explain why net profit and operating profit followed different paths.

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What happened in the next quarterly update?

The latest quarterly results available as of 8 October 2026 were for Q1 FY2026/27, the quarter ended 30 June 2026. SIA reported a S$76 million net loss. Operating profit fell to S$106 million from S$405 million, while net fuel costs rose 78.5% to S$2.253 billion amid a higher fuel-price environment. SIA cited lower operating profit and a higher share of Air India losses as drivers of the year-on-year deterioration, partly offset by lower tax expense. This is a later quarter with additional operating pressure, not a restatement of the FY2025/26 first-half result. SIA’s Q1 FY2026/27 business update.

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