[SINGAPORE] Singapore Airlines (SIA) posted a 65 per cent surge in net profit to S$2 billion for the second half of FY2025 ended March, boosted by the non-cash accounting gain from the Air India-Vistara merger.
That one-off gain of S$1.1 billion also lifted the group’s full-year net profit to a record S$2.8 billion, against FY2024’s S$2.7 billion, which was the previous record.
In 2024, Vistara was merged with Air India, resulting in SIA holding a 25.1 per cent share in the merged entity. Vistara was a 49 per cent associated company of SIA, before the merger took place.
Revenue rose 1.9 per cent year on year to S$10 billion, marking another record-high from S$9.9 billion in the year-ago period, the group – which includes budget airline Scoot – said in its financial results published on Thursday (May 15).
Key segments registered higher top line, as passenger revenue inched up 0.6 per cent and cargo sales were up 4.9 per cent.
However, its operating profit dipped 22.1 per cent to S$914 million as expenditure increased at a faster clip of 5.2 per cent than the marginal improvement in revenue.
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SIA’s earnings per share stood at S$0.685, against S$0.322 for the year-ago period.
The company proposed a final dividend of S$0.30 per share, down from S$0.38 declared for FY2024.
Net asset value per share was at S$5.27 as at Mar 31, compared with S$5.49 in the previous corresponding period.
SIA and Scoot transported a total of 20.2 million passengers, up 5.5 per cent year on year during the half-year ended March. However, group passenger load factor (measuring the extent passenger capacity has been utilised) slipped 0.5 percentage point year on year to 86.8 per cent amid keen competition.
Scoot’s passenger volume and load factor both fell by 0.3 per cent and 2.9 percentage points respectively, contributing to lower corresponding metrics for the group.
Cargo load factor was 1.4 percentage points lower at 54.9 per cent.
SIA delivered a 3.9 per cent rise in its bottom line to S$2.8 billion for the full year. Revenue came in at S$19.6 billion, up 2.8 per cent.
The carrier said that the global airline industry’s operating environment is challenging due to changing tariff policies and trade tensions, economic and geopolitical uncertainties, and continued supply chain constraints. This may have an impact on consumer and business confidence, and thereby potentially affect both passenger and cargo markets.
However, passenger and trade flow shifts may present opportunities for the group.
SIA had 145 passenger planes and seven freighters, while Scoot had 53 passenger aircraft, serving the group passenger network of 128 destinations and cargo network of 132 destinations as at Mar 31.
SIA shares closed 0.3 per cent or S$0.02 up at S$6.88 on Thursday, before its financial results were published.
