Singapore Airlines's profits plummet due to Air India losses
Singapore Airlines just reported an 82% drop in net income for the second quarter ended September 30—down to S$52 million (about $40 million).
The main reason? Heavy losses from Air India, where Singapore Airlines owns a 25.1% stake.
Air India's financial struggles are impacting Singapore Airlines
Air India is struggling financially and looking for a massive ₹10,000 crore (roughly $1.1 billion) boost from its owners—Tata Sons and Singapore Airlines.
This dragged down Singapore Airlines's results by S$417 million this half-year alone.
Record passenger numbers for Singapore Airlines
Even with these money troubles, more people are flying Singapore Airlines than ever before.
The group carried a record 10.5 million passengers, and its budget airline Scoot kept planes over 90% full for six months straight.
Lower fuel costs also helped bump up operating profits by 23%.
Singapore Airlines remains committed to Air India
Despite the setback, Singapore Airlines says it's sticking by Air India and believes demand will stay strong in the coming months.
Their ongoing support—alongside Tata Sons—is seen as key to helping Air India bounce back from its rough patch.