Singapore — Shares of Singapore Airlines (SIA) fell sharply on Monday after the national carrier reported a 59% drop in net profit for the first quarter of its financial year. The stock recorded an intraday fall of more than 8%, marking its steepest decline since August 2024, and was last trading 7.11% lower at S$7.08.
SIA’s net profit for the quarter ended June 30 dropped to S$186 million (US$144 million), down from S$460 million in the same period last year. The decline was mainly due to lower interest income and losses from associated companies, according to the airline’s earnings report.
The company’s operating profit also saw a year-on-year decline of 13.8%, coming in at S$405 million. In its statement, SIA said the reduced net profit was “largely attributable to lower cash balances, interest rate cuts, and a share of losses from associated companies,” which contrasted with profits in the same quarter last year.
A major contributor to the losses was Air India, in which SIA holds a 25.1% stake following its merger with Vistara in late 2024. The airline began equity accounting for Air India from December last year.
Analysts pointed to unexpected financial difficulties at Air India, including a significant drop in bookings following a Boeing Dreamliner incident in June. Tabitha Foo, equity research analyst at DBS Bank, said the impact on Air India’s reputation and operations is likely to continue in the near term, affecting SIA’s overall performance.
Despite the earnings drop, SIA said that passenger and cargo demand remained strong, especially across major routes during the traditional summer travel season. However, the carrier noted that global conditions remain volatile, citing geopolitical developments and uncertain cargo demand due to U.S. trade tariffs.
SIA maintains that it is in a strong position, supported by a solid balance sheet, advanced digital capabilities, and a skilled workforce. Still, investment bank Maybank downgraded its outlook on the airline’s stock from “Hold” to “Sell,” citing weaker cargo demand and rising operating costs. Maybank has revised its profit forecast for SIA down by 25–29% over the next three years and set a new target price of S$6.75 per share.
The airline industry continues to face multiple challenges, but SIA’s diversified network and strong brand presence could help stabilize future performance.
