Singapore Airlines Group posts record net profit amid 'challenging operating environment'

The Singapore Airlines (SIA) group has posted a record net profit of $2.8 billion for the 2024/25 financial year, with year-on-year revenues rising by 2.8%.

Group revenue climbed $527 million (+2.8%) from the previous year before to a record $19,540 million, driven by “resilient demand for air travel and cargo uplift in FY2024/25”.

The group’s two airlines – Singapore Airlines and Scoot – carried a record combined 39.4 million passengers, up 8.1%.

Group passenger load factor fell 1.4 percentage points to 86.6% as passenger traffic growth of 6.4% lagged capacity expansion of 8.2%.

Group expenditure rose $1,546 million to $17,831 million, with non-fuel expenditure up $1,236 million, driven by “the 8.9% overall capacity growth and cost escalation pressures”.

An SIA spokesperson said this was “partially mitigated by the group’s cost management measures”, which included digitalisation and “productivity improvement initiatives”.

Net fuel cost increased by $309 million as the impact of the increase in volume uplifted and smaller fuel hedging gains was partially offset by an 8.5% reduction in fuel prices and “favourable exchange rate impact”.

As a result, the group recorded a lower operating profit of $1,709 million for FY2024/25, down $1,019 million from the prior year.

The group’s net profit improved $103 million to a record $2,778 million, which it credited to a $1,098 million non-cash accounting gain following the completion of the Air India-Vistara merger in November 2024.

As of March 31, the group’s operating fleet comprised 205 aircraft with an average age of seven years and eight months.

At the time, SIA operated 145 passenger aircraft and seven freighters, while Scoot had 53 passenger aircraft. In April, the group added one Airbus A321neo and one Boeing 787-8 to its fleet.

As of May 1, the group had 78 aircraft on order.

A SIA spokesperson said: “The global airline industry faces a challenging operating environment amid changing tariff policies and trade tensions, economic and geopolitical uncertainties, and continued supply chain constraints.

“While global uncertainties remain, the group is in a strong position to focus on profitability, while pursuing growth opportunities and ensuring long-term value creation for shareholders.”

Pic credit: Chairil Azmi / Shutterstock