Singapore Airlines expects air travel demand to stay healthy in the current quarter despite a continuing “competitive operating landscape”.
The Asian carrier pointed to the airline industry facing headwinds such as cost inflation, supply chain constraints, geopolitical tensions, economic uncertainty and increased competition.
However, SIA reported an improved operating profit of S$629 million (£373 million) in the three months to December 31, despite declining yields amid stiffer competition.
The city-state’s flag carrier posted a net profit of S$1.63 billion for the period, compared with S$659 million a year earlier.
SIA benefited from a one-off S$1.1 billion gain from the merger in November of Indian carriers Air India and Vistara – in which it had a 49% stake – boosting the bottom line, it said in a statement.
The deal gave SIA a 25.1% stake in the Air India group, while autos-to-steel conglomerate Tata holds 74.9% of the combined entity.
SIA said: “The demand for air travel is expected to stay healthy heading into the last quarter of full year 2024-25, even as the operating landscape continues to be competitive.
“The group remains nimble and agile, adjusting its network and capacity as it navigates the industry-wide normalisation of yields and capacity.
“The group is well-positioned to navigate these challenges thanks to its robust foundations, which include its strong financial standing, a talented and dedicated workforce, and industry-leading digital capabilities.”
A S$1.1 billion multi-year programme to install new long-haul cabin products across its Airbus A350-900 long-haul and ultra-long-range fleet was confirmed in November, including a new first class cabin in its seven ultra long range aircraft.
SIA and the enlarged Air India added 51 new codeshare destinations, offering enhanced travel options between Singapore and India, as well as beyond.
“Both airlines are exploring opportunities to deepen their strategic relationship across a wide range of commercial activities,” SIA said.
Garuda Indonesia and SIA increased flight frequencies between Jakarta Indonesia and Singapore to improve connectivity between the two hubs. They also expanded a codeshare partnership to cover 390 weekly services.
SIA added: “Strategic initiatives such as win-win commercial partnerships with like-minded carriers, including recent developments in southeast Asia and India, allow the group to directly participate in fast-growing markets and give its customers more options and greater value.
“Additionally, the group’s airline portfolio with two industry-leading carriers puts it in a strong position to capitalise on revenue and growth opportunities in different traffic segments while maintaining cost discipline.
“The group is also firmly committed to continue to invest in and innovate across the three pillars of its brand promise – service excellence, network connectivity, and product leadership. This will enhance the end-to-end travel experience, help to retain customer loyalty, and reinforce the group’s industry-leading position.”