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Singapore Airlines Posts Record Annual Profit of US$2.14 Billion

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The Singapore Airlines Group (SIA) announced this Thursday a record net profit of 2.778 billion Singapore dollars (US$2.14 billion) for the fiscal year ending March 31, 2025. This achievement was driven by a non-cash accounting gain of 1.098 billion Singapore dollars resulting from the merger between Air India and Vistara in November 2024.

Despite a 37.3% decline in operating profit, which stood at 1.709 billion Singapore dollars, the company demonstrated resilience in a competitive environment marked by global overcapacity. Overall, Group revenues increased by 2.8% year-on-year, reaching 19.540 billion, fueled by strong demand in both passenger and cargo segments.

Passenger and Cargo Performance

SIA and its low-cost subsidiary Scoot carried 39.4 million passengers during the fiscal year, an 8.1% increase compared to the previous year. However, the Group’s passenger load factor (PLF) decreased by 1.4 percentage points to 86.6%, as passenger traffic growth (+6.4%) failed to match capacity expansion (+8.2%).

In the cargo segment, the company reported a 4.4% increase in revenue, reaching 2.087 billion Singapore dollars, driven by e-commerce growth and disruptions in maritime shipping. Despite an 7.8% decline in yields, the cargo load factor (CLF) rose by 1.6 percentage points to 56.1%.

Rising Costs, Managed Effectively

Total Group expenses grew by 9.5%, reaching 17.831 billion Singapore dollars, primarily due to an 11% increase in non-fuel costs, in line with higher operational capacity. Net fuel costs rose by 6.1%, totaling 5.386 billion, despite an 8.5% drop in fuel prices, owing to lower hedging gains and higher consumption volumes.

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Second Half: Strong Financial Performance

During the second half of the fiscal year, SIA achieved its highest-ever half-year revenue of 10.042 billion Singapore dollars, a 1.9% year-on-year increase. Net profit surged by 65% to 2.036 billion, again bolstered by the accounting gain from the Vistara merger.

However, operating profit fell by 22.1% to 914 million Singapore dollars, reflecting higher operating expenses, particularly non-fuel costs, which rose by 10%, outpacing the 7.3% capacity growth.

Fleet and Network Expansion: More Destinations, Greater Reach

By the end of the fiscal year, the Group’s operational fleet comprised 205 aircraft with an average age of seven years and eight months. This includes 145 SIA passenger aircraft, 53 Scoot planes, and seven freighters. In April 2025, an Airbus A321neo and a Boeing 787-8 were added to the fleet. As of May 1, 2025, the order book stood at 78 aircraft.

The passenger network covered 128 destinations across 36 countries and territories, while the cargo network reached 132 destinations in 37 countries. Scoot expanded its operations with new routes to Iloilo City in April and Vienna starting in June. Meanwhile, SIA will increase capacity on key routes such as Brisbane, Colombo, London (Gatwick), Seattle, and others during the 2025 summer season.

Strategic Alliances and Innovation Leadership

SIA is reinforcing its premium positioning with a $1.1 billion investment in new cabin products for its Airbus A350-900 fleet, including an exclusive First Class for its ultra-long-range aircraft. Additionally, it will allocate $45 million to renovate its SilverKris and KrisFlyer Gold lounges at Changi Airport Terminal 2, increasing capacity by 50%.

In technology, the collaboration with Salesforce and OpenAI underscores the Group’s commitment to generative AI for personalized customer service and operational optimization. This positions SIA as a pioneer in the digital transformation of the aviation industry.

Outlook: Resilience in a Challenging Environment

Despite persistent challenges such as geopolitical tensions, shifts in trade policies, and supply chain disruptions, the Group remains well-positioned thanks to a strong balance sheet, a dedicated team, and a diversified network across Asia and the Pacific.

With a clear focus on product and service excellence, technological investments, and new alliances, Singapore Airlines is poised for the future, ready to consolidate its leadership while delivering sustainable value to shareholders.

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