Singapore Airlines confirmed more Gatwick flights despite half year profits almost halving in the face of increased capacity and stronger competition in key markets.
While air travel demand remained strong in the six months to September 30, the group, which includes low cost arm Scoot, reported a 48.5% fall in year-on-year net profits to 742 million Singapore dollars ($559.12 million).
This was “primarily due” to a weaker operating performance.
“Other contributing factors included lower net interest income and a loss on disposal of aircraft, spares, and spare engines versus a gain last year,” the company said.
“However, relative to last year, share of profits from associated companies was higher and tax expense was lower.”
Operating profit for the company fell 48.8% to SG$796 million, down from SG$1.55 billion a year ago, while revenue increased 3.7% to SG$9.5 billion.
Overall passenger carryings across the two carriers rose by 10.8% to 19.2 million.
But “increased competition and higher passenger capacity in key markets exerted pressure on yields, which fell 5.6%,” according to the SIA Group.
Despite this, SIA plans to boost frequencies and passenger capacity across its network in the northern summer 2025 operating season from March 30, including increased services to Gatwick, Barcelona, Milan and Rome.
SIA added four Boeing 787-10 Dreamliners to its operating fleet in the second quarter to give a total of 205 aircraft across the group. It has 84 further aircraft on order.
Looking forward, a group statement said: “While the demand for air travel is expected to be robust in the second half of the financial year, the operating landscape will continue to be competitive.
“The group will remain nimble and agile, adjusting its passenger network and capacity to match evolving demand patterns.
“As the aviation industry grapples with geo-political tensions, macroeconomic uncertainty, increased competition, and inflationary cost pressures, the group remains well-positioned to navigate these from a position of strength.
“Its strong financial position, firm focus on people and digital initiatives, long-term strategic investments, and deeper partnerships with like-minded carriers will enable it to seize revenue and growth opportunities, while maintaining its focus on cost discipline.
“Having an airline portfolio comprising two world-class carriers serving distinct segments gives the group the flexibility to swiftly adapt to changing market dynamics, while also finding ways to deepen the network connectivity between SIA and Scoot.”
Meanwhile, the Singapore Tourism Board and Skyscanner have signed a two-year Memorandum of Understanding (MOU) to promote the city-state as a preferred travel destination.