Singapore Airlines continues to maintain its 25.1% ownership stake in Air India despite the investment substantially impacting its financial performance. The carrier reported a net profit of S$134 million for the six-month period ending September 30, representing a 44% decline compared to the prior year, despite achieving record revenue of S$11.3 billion.
The airline’s share of losses from Air India and other associated companies amounted to S$361.7 million during the period, nearly triple the group’s overall net profit. This represents a notable improvement from S$429.5 million in losses recorded in the corresponding period a year earlier, indicating some progress in reducing the financial burden of the Air India investment.
The improvement in Air India-related losses was concentrated in the second quarter, with SIA reporting a S$110 million reduction in associated company losses during the three-month period ending September compared to the same quarter previously. However, this improvement was partially offset by worse losses in the first quarter relative to the prior year, suggesting the trajectory of Air India’s performance has been uneven.
Analysts note that while Air India’s losses are declining, the investment will only prove profitable for Singapore Airlines if the Indian carrier succeeds in addressing its underlying cost structure. Until Air India achieves operational efficiency improvements, the airline’s profitable core operations will continue to subsidize the investment, keeping overall group profitability constrained.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI