Singapore Airlines (SIA) Group has reported a record net profit of S$2.78 billion for the financial year ended 31 March 2025, up 3.9% from the previous year, primarily boosted by a S$1.1 billion non-cash accounting gain from the merger between Air India and Vistara.
The group’s operating profit, however, fell by 37.3% to S$1.71 billion amid rising costs and intense competition that pushed down passenger yields.
Total expenditure surged 9.5% year-on-year to S$17.83 billion, driven by higher non-fuel costs and a moderate increase in net fuel costs.
Despite the challenging environment, revenue rose 2.8% to a new high of S$19.54 billion, supported by robust demand for air travel and cargo services. SIA and its low-cost subsidiary Scoot carried a record 39.4 million passengers, up 8.1% from the previous year.
Passenger yields dropped 5.5% due to aggressive capacity expansion across the industry, while cargo revenue improved 4.4% on strong e-commerce and perishables demand, despite a decline in cargo yields.
During the year, SIA completed its strategic merger of Vistara with Air India, acquiring a 25.1% stake in the enlarged airline. This move cements the Group’s presence in the fast-growing Indian aviation market.
The airline also announced over S$1.1 billion in investments to upgrade its long-haul cabin products, including new First Class suites for its Airbus A350-900ULR aircraft. Additionally, S$45 million has been allocated to revamp its SilverKris and KrisFlyer Gold lounges at Changi Airport Terminal 2.
SIA is also making major strides in digital transformation, working with Salesforce and OpenAI to integrate generative AI solutions that will enhance customer experience and operational efficiency.
While global macroeconomic and geopolitical uncertainties continue to pose risks, SIA remains confident in its long-term strategy. With a strong balance sheet, diversified global network, and a dual-brand strategy via SIA and Scoot, the Group says it is well-positioned to navigate headwinds and seize growth opportunities.
The Group is proposing a final dividend of 30 cents per share, bringing the total dividend payout for FY2024/25 to 40 cents per share.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
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