Singapore Airline Group’s net profit increases 147% on back of Air India-Vistara merger, BA

Singapore Airlines (SIA) Group reported a 3.3 per cent year-on-year increase in operating profit, reaching USD629 million for the third quarter of FY2024/25. This was achieved despite a competitive landscape and declining yields. The Group posted record revenues of USD5.22 billion for the three months ended 31 December 2024, a 2.7 per cent increase compared to the same period last year. Passenger carriage reached a new high, with SIA and Scoot carrying 10.2 million passengers, a 7.2 per cent increase over the previous year. However, competition and increased capacity led to a 4.5 per cent decrease in yields, placing pressure on revenue per passenger-kilometre.

Cargo revenue also saw a rise, up 9.7 per cent year-on-year, driven by a surge in e-commerce, perishables traffic, and freighter operations. However, yields for cargo dipped by 4.5 per cent. Expenditure increased by 2.6 per cent to USD4.59 billion, primarily due to higher non-fuel costs, which grew by 8.6 per cent. Fuel costs decreased by 9.8 per cent, thanks to lower global oil prices. The Group’s disciplined cost management helped mitigate inflationary pressures, despite the capacity expansion of 10.1 per cent.

The Group’s net profit saw a remarkable increase of 146.7 per cent, reaching USD1.63 billion, largely due to a one-off non-cash accounting gain of USD1.1 billion from the merger of Air India and Vistara in November 2024.

For the nine months ending December 2024, SIA Group achieved USD14.72 billion in revenue, an increase of 3.3 per cent from the previous year. Operating expenditure rose by 10 per cent, largely driven by capacity expansion and fuel volume increases. Despite the dip in operating profit, net profit remained higher due to the merger gain.

The Group’s balance sheet remains robust with shareholder equity at USD15.4 billion. Cash balances fell slightly due to the redemption of bonds and other financial activities, but the Group maintains substantial liquidity, including USD3.3 billion in undrawn credit lines.

Looking ahead, SIA Group anticipates sustained demand for air travel, particularly in e-commerce and perishables, while acknowledging challenges such as geopolitical tensions and economic uncertainty.