Singapore Airlines quarterly profits drop despite record passenger carryings 

Singapore Airlines reported an almost 59% fall in first quarter net profits despite achieving record passenger numbers.

SIA and low cost offshoot Scoot saw the figure fall for the three months to June 30 to S$186 million from S$452 million in the same period last year.

The group said: “Passenger yields declined due to industry-wide capacity growth, while rising non-fuel costs from inflationary pressures offset lower fuel prices.”

Demand for air travel and cargo remained strong despite economic and geopolitical uncertainties across the network, with the sister airlines carrying a record 10.3 million passengers, up 6.9% from the same quarter last year.

However, passenger yields slipped 2.9% amid heightened competition as more airlines continue to add capacity.

The S$266 million drop in net profits included a share of losses of associated companies, notably from Air India in which the group has a quarter shareholding as part of the integration of Vistara into the Indian flag carrier.

SIA was this month granted conditional approval by Singapore’s competition and consumer commission for a proposed commercial joint venture with Malaysia Airlines. 

The group said: “Subject to approval from the Malaysian Aviation Commission, this partnership will see both airlines working together in areas such as sales and marketing, as well as expanded codeshare flights. 

“This collaboration will provide customers with better value, additional options, and enhanced flight connectivity, while boosting tourism in both countries.”

Looking forward, SIA said:  “The demand for air travel remains healthy in the second quarter of FY2025-26 across most route regions due to the traditional summer peak. 

“However, the global airline industry continues to face a volatile operating environment, with challenges ranging from geopolitical developments and macroeconomic fluctuations to changing market dynamics and supply chain constraints. 

“The group will be agile and proactive in responding to changes in demand patterns.

“Long-term strategic initiatives, including continued investment in service excellence, network connectivity, and product leadership will underpin its growth plans, alongside its rigorous cost discipline. 

“The group will remain vigilant in this dynamic operating environment, while identifying and capitalising on emerging areas of growth.”