Singapore Airlines (SIA) has reported a record net profit of S$2.78 billion (US$2.14 billion) for the financial year ending 31 March 2025, marking a 3.9% increase from the previous year’s S$2.68 billion.
This surge is primarily attributed to a one-off non-cash accounting gain of S$1.1 billion from the completion of the Air India-Vistara merger in November 2024.
Despite the record net profit, SIA’s operating profit declined by 37.3% to S$1.71 billion, down from S$2.73 billion the previous year.
The drop is largely due to a 5.5% decrease in passenger yields, a proxy for airfares, amid intensified competition as global airlines expanded capacity.
The airline carried a record 39.4 million passengers during the year, an 8.1% increase from the previous year.
However, the passenger load factor fell by 1.4 percentage points to 86.6%, as capacity expansion outpaced passenger traffic growth.
Cargo revenue improved by 4.4%, driven by strong demand for e-commerce and perishables, as well as disruptions to sea freight.
Nonetheless, cargo yields declined by 7.8% due to increased competition.
Reuters
Total group revenue reached a record S$19.54 billion, a 2.8% increase from the previous year.
However, total expenditure rose by 9.5% to S$17.83 billion, with non-fuel expenditure increasing by 11% due to capacity growth and cost escalation pressures.
In recognition of the company’s performance, SIA announced a profit-sharing bonus of 7.45 months for its employees, based on a long-standing formula agreed upon with staff unions.
This is slightly lower than the previous year’s record bonus of 7.94 months.
The airline declared a final dividend of 30 Singapore cents per share, bringing the total dividend for the year to 40 cents per share.
This is a decrease from the previous year’s total dividend of 48 cents per share.
The completion of the Air India-Vistara merger has resulted in SIA holding a 25.1% stake in the enlarged Air India group, allowing the airline to participate directly in the rapidly growing Indian aviation market.
The merger enables Air India to operate over 5,600 weekly flights connecting more than 90 destinations with a fleet of 208 aircraft.
Looking ahead, SIA acknowledges the challenging operating environment, citing changing tariff policies, trade tensions, economic and geopolitical uncertainties, and continued supply chain constraints.
The group remains vigilant and is prepared to respond swiftly to market developments.
Despite these challenges, SIA believes that shifts in global passenger and trade flows may create new opportunities, leveraging its well-diversified global passenger and cargo network.
The group is committed to focusing on profitability while pursuing growth opportunities and ensuring long-term value creation for shareholders.
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