SIA Shares Fall as Air India Losses Weigh on Earnings
SIA shares fall after the airline reported a sharp 67.8% decline in net profit, mainly due to Air India’s losses. Despite record revenues and a slight increase in operating profits, SIA’s financial performance suffered from Air India’s ongoing struggles. This raised concerns about SIA’s ability to maintain its earnings growth, but the airline remains committed to its long-term investment in Air India’s transformation.
Impact of Air India Losses on SIA Shares Fall
SIA saw a 0.9% increase in operating profit, reaching $803 million. However, net profit fell sharply to $239 million due to Air India’s financial challenges. The situation worsened after a tragic plane crash in June 2025. As a result, SIA shares fell by 2%, dropping to $6.52 from $6.65. Investors are now concerned about the airline’s long-term profitability.
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SIA’s Long-Term Commitment Despite the SIA Shares Fall
Despite the SIA shares fall, the airline continues to support Air India’s transformation. CEO Mr. Goh confirmed SIA’s long-term commitment to Air India’s five-year transformation plan. SIA views India’s aviation sector as a major growth opportunity, with the market projected to grow 5.6% annually from 2024 to 2044. This investment allows SIA to benefit from India’s expanding domestic and international air travel market, positioning the airline for future success despite current challenges.
Mr. Goh also noted that SIA’s investment in Air India gives the airline access to one of the world’s fastest-growing aviation markets. With India’s economy growing rapidly, SIA expects to see a significant return on its investment in the long run.
