SIA Group Net Profit Soars 146.7% to $1.63b in Q3

Singapore Airlines (SIA) Group has reported a significant surge in its net profit for the third quarter of the financial year 2024/25, with a 146.7% increase to $1.63 billion. This remarkable growth can be attributed to a one-time accounting gain from the merger of its former joint venture Vistara with Air India, which resulted in SIA gaining a 25.1% stake in the newly-enlarged Air India. Additionally, the Group's operating profit improved by 3% year on year, driven by a 2.7% rise in operating revenue to $5.2 billion.



Passenger revenue improved despite a 4.5% decline in yields, with SIA and Scoot hitting a quarterly record in passenger volumes, at 10.2 million passengers carried. The Group's passenger load factor experienced a slight decline of 1.0 percentage points, settling at 87.2%, as capacity grew 8.5%, outpacing demand. Yields fell 4.5% due to increased competition. Cargo flown revenue climbed $54 million (+9.7%), supported by strong e-commerce demand, higher freighter charters, and perishables traffic. Cargo load factor rose to 56.4% (+0.9pp), though yields declined 4.5%.

The Group's total Group expenditure increased by $117 million (+2.6%) to $4.59 billion, mainly due to a $258 million (+8.6%) rise in non-fuel costs. However, this was partially offset by a $142 million (-9.8%) drop in net fuel costs, attributed to a 20.9% decrease in fuel prices before hedging.

SIA Group's strong performance in the third quarter reflects the resilience of the aviation industry and the Group's ability to navigate the competitive landscape and rising fuel prices. The Group remains well-positioned to capitalize on the growing demand for air travel and cargo services, while continuing to manage costs and expand capacity amidst increasing competition and fuel price volatility.



In conclusion, SIA Group's net profit soared 146.7% to $1.63 billion in the third quarter, driven by a one-time accounting gain from the merger of Vistara and Air India, and improved operating profit. The Group's strong performance is a testament to its ability to adapt to the evolving competitive landscape and capitalize on growth opportunities in the aviation industry.