On Thursday, Singapore Airlines disclosed a significant 82% decline in its second-quarter earnings, failing to meet projections. This downturn was attributed to setbacks linked to its Air India investment and reduced interest income.

Here’s a breakdown of the airline’s performance for the quarter ending in September, compared to LSEG SmartEstimates, which prioritize forecasts from analysts renowned for their accuracy:

• Revenue: 4.89 billion Singapore dollars ($3.76 billion) vs. 4.94 billion Singapore dollars expected
• Net profit: 52 million Singapore dollars vs. 181.47 million Singapore dollars expected

For the first half of the fiscal year, net profit plummeted to 239 million Singapore dollars, marking a 67.8% decrease from the previous year, as reported by the company.

Interest income during the second quarter saw a reduction of 42 million Singapore dollars, influenced by diminished cash reserves and interest rate reductions. Additionally, affiliated enterprises, notably Air India, incurred a collective loss of 295 million Singapore dollars during this timeframe.

Singapore Airlines, also known as SIA, holds a 25.1% stake in Air India following its November 2024 merger with Vistara, co-owned with India’s Tata Sons. SIA began equity accounting for the airline from December 2024.

“Despite the ongoing challenges, the SIA Group remains committed to working with its partner Tata Sons to support Air India’s comprehensive multi-year transformation programme,” the carrier said in a statement.

Air India was also a drag on the group’s results in the previous quarter and was reportedly seeking at least 100 billion rupees ($1.1 billion) in financial aid from SIA and Tata Sons, after a June crash that killed more than 240 passengers, according to Bloomberg.

Any financial support, earmarked for system upgrades and in-house engineering and maintenance capabilities, would be proportional to ownership, Bloomberg reported, citing people familiar with the matter.

SIA has been expanding its commercial partnerships. It launched new codeshare services with Vietnam Airlines in September, strengthening its presence on Southeast Asian routes.

In October, it deepened its joint venture with the Lufthansa Group by adding Brussels Airlines, improving routes between Europe and the Asia-Pacific region.

The carrier said demand for air travel remains resilient heading into the third-quarter peak. Still, it warned that air cargo trends remain uncertain amid shifting trade policies and market volatility.

“The airline industry continues to face challenges from geopolitical tensions, macroeconomic headwinds, inflationary cost pressures, and supply chain constraints,” SIA said.