Singapore Airlines shares fall 6% as profit nearly halves amid intensifying competition

Core Insights - Singapore Airlines reported a nearly 50% decline in net profit for the first half of the fiscal year, attributed to lower yields and increased competition [1][2][3] - The airline's net profit for the period was $742 million SGD ($559.12 million), down 48.5% from $1.44 billion SGD a year earlier [2] - Operating profit also fell by 48.8% to $796 million SGD, while revenue increased by 3.7% to $9.5 billion SGD [2] Financial Performance - The significant drop in net profit and operating profit was linked to "increased capacity and stronger competition in key markets," which negatively impacted yields [3] - Despite the profit decline, Singapore Airlines maintained an interim dividend of 10 cents per share [2] Future Outlook - Demand for air travel is expected to remain strong in the second half of the financial year, although the competitive operating landscape is anticipated to persist [3] - Singapore Airlines announced a $1.1 billion SGD cabin retrofit program for its 41 long-range and ultra-long-range Airbus A350 jets, with the first retrofitted jet expected to enter service by 2026 and completion of the program by 2030 [3][4]