Singapore Airlines Profit Drops on Air India Losses

Singapore Airlines reported a 59% drop in first-quarter net profit to S$186 million (US$145 million), falling significantly below analyst expectations. The sharp decline was mainly due to losses from associated companies, particularly Air India, whose financials were consolidated for the first time after Vistara's integration with Air India under Tata Group. Despite a 1.5% increase in revenue, the airline faced lower passenger yields, higher nonfuel expenses linked to inflation and capacity growth, and reduced interest income. Cargo revenue also fell amid weaker pricing and unpredictable demand from global trade policy changes. While demand for travel remains robust for the summer, SIA warned of ongoing volatility from competition, supply chain challenges, and geopolitical issues. Analysts and investors remain concerned about the ongoing drag from Air India’s losses and slower-than-expected benefits from the merger.