Singapore Airlines (SIA) has announced a substantial increase in its net profit for the third quarter of the financial year 2024/25, more than doubling to S$1.63 billion (approximately $1.22 billion) from S$659 million in the same period the previous year.
This impressive growth is primarily attributed to a one-time non-cash accounting gain of S$1.10 billion resulting from the merger between Air India and Vistara, completed in November 2024. As a significant stakeholder in Vistara, SIA acquired a 25.1% stake in the newly formed Air India group, enhancing its presence in the Indian aviation market.
Beyond the merger-related gain, SIA’s operating profit for the quarter rose by 3% year-on-year to S$629 million, driven by a 2.7% increase in operating revenue to S$5.2 billion. Passenger revenue improved despite a 4.5% decline in yields, with SIA and its low-cost subsidiary, Scoot, achieving a quarterly record by carrying 10.2 million passengers.
The airline’s cargo segment also contributed positively, with cargo flown revenue climbing by 9.7% to S$607 million, supported by strong e-commerce demand and higher freighter charters. However, the cargo yield declined by 4.5%, reflecting increased competition in the sector.
Despite the overall positive financial performance, SIA faces challenges from rising non-fuel costs, which increased by 8.6% to S$258 million. The airline continues to focus on effective cost management to mitigate these pressures.
Looking ahead, SIA remains optimistic about sustained travel demand, anticipating that the operating landscape will continue to be competitive. The airline is committed to leveraging its expanded stake in the Air India group to strengthen its position in the global aviation market.
