Singapore Airlines stock fall after first-quarter profit declines

Civil jet airplanes of Singapore Airlines and its subsidiaries — Tigerair, Silkair and Scoot — at Changi International Airport, Singapore.

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Shares of Singapore Airlines plunged after the carrier reported a 59% decline in earnings for the first quarter of its financial year.

SIA stock fell more than 8% and logged the largest intra-day decline since August 2024, data from LSEG showed. It is currently trading 7.11% lower.

Net profit fell to 186 million Singapore dollars ($144 million) for the quarter ended June 30, according to the company’s earnings report. The drop was attributed to reduced interest income and losses from its associates.

Its operating profit in the first quarter also fell 13.8% to S$405 million year over year.

Stocks of Singapore Airlines fall over 8% after first quarter profit plunges

“In addition to the lower operating profit, the reduction in net profit was largely attributable to a lower interest income on the back of lower cash balances and interest rate cuts, and the Group recording a share of losses of associated companies compared to a share of profits for the same quarter last year,” SIA said in its earnings statement.

Air India drag

Singapore’s flagship carrier also noted that the loss stemmed from Air India’s financials, which were not included in the group’s results for the same quarter in 2024.

Singapore Airlines began equity accounting for Air India from December 2024, after Vistara was fully merged into the airline. SIA now holds a 25.1% stake in Air India.

“Air India losses were significantly deeper than expected and are unlikely to ease in the near term as the airline navigates a complex restructuring alongside reputational damage,” Tabitha Foo, equity research analyst at DBS Bank, told CNBC.

“Following the [Boeing] Dreamliner incident in June, Air India reportedly saw a 20% drop in bookings across domestic and international routes,” she said, adding that average fares dropped 8% to 15% while cancellations rose, especially among corporate and premium leisure travelers.

Foo noted that most of the costs associated with the crash of Air India Flight 171 should be covered by insurance.

Yet, “Air India is still likely to remain a near-term drag on SIA’s bottom line,” she said.