Nov 13 (Reuters) - Singapore Airlines reported a sharp drop in first-half profit on Thursday, hit by losses at its Indian associate Air India, higher costs and intensifying competition across key markets.
The city-state's flag carrier said half-year net profit came in at S$239 million ($184.67 million) for the six months ended September 30, compared with S$742 million a year earlier and a Visible Alpha consensus estimate of S$341.9 million.
Total expenditure rose by S$170 million, even as net fuel costs fell. The increase reflected the airline’s capacity expansion and inflationary pressures across several cost components.
The company's interest income was also dented by S$103 million due to smaller cash balances and interest rate cuts, while share of results from associated companies plunged S$417 million, largely because of Air India’s losses.
Air India’s results were not part of the group’s earnings a year earlier. Singapore Airlines began accounting for the Indian carrier’s performance from December 2024, after completing the integration of its joint venture Vistara into Air India.
Singapore Airlines holds a 25.1% stake in the Indian carrier.
The airline announced an interim dividend of 5 Singapore cents per share and an interim special dividend of 3 Singapore cents apiece.
($1 = 1.2942 Singapore dollars)