Singapore Airlines Posts Record $2.78B Profit in FY2024/25

Singapore Airlines Group (SIA) has reported its highest-ever annual net profit of US$2.78 billion for the financial year 2024/25, marking a 3.9% year-on-year increase and the best result in the airline’s 53-year history under its current name. The milestone came despite declining yields and intensified competition on key international routes.

The record earnings were significantly boosted by a one-time US$1.1 billion non-cash accounting gain resulting from SIA’s strategic 25.1% stake in the newly merged Air India-Vistara entity, finalized in November 2024. SIA said the investment supports its multi-hub strategy and taps into India’s rapidly expanding aviation market.

Group revenue climbed 2.8% year-on-year to US$19.54 billion, driven by record-breaking passenger volumes and robust demand in both passenger and cargo segments. Combined, Singapore Airlines and its low-cost subsidiary Scoot transported 39.4 million passengers during the fiscal year, up 8.1% from the prior year. However, revenue per passenger-kilometer (RPK) dropped 5.5% due to network capacity expanding faster than passenger demand and downward pricing pressure from increased competition.

While operating profits fell by 37.3% to US$1.71 billion due to rising costs, particularly non-fuel expenses and less favorable fuel hedging outcomes, net earnings remained strong. Total group expenditure rose 9.5% to US$17.83 billion, as inflation and higher capacity contributed to an 11% increase in non-fuel costs.

In the second half of FY2024/25 alone, SIA Group saw net profit surge 65% to US$2.04 billion on revenues of US$10.04 billion, a record half-yearly performance driven by seasonal travel demand and merger-related financial gains.

On the cargo side, revenues grew 4.4% thanks to rising demand for perishables, e-commerce, and capacity shifts triggered by disruptions in global sea freight, especially via the Red Sea and Suez Canal. SIA Cargo’s load factor rose to 56.1%, while yields declined 7.8% amid heightened competition and softening freight rates.

By year-end, SIA Group operated a modern fleet of 205 aircraft with an average age of 7 years and 8 months. This included 136 aircraft for Singapore Airlines, 57 for Scoot, and 12 dedicated freighters. The group served 128 destinations globally, with 112 routes from Singapore Airlines alone.

Financially, the group ended the fiscal year with US$8.3 billion in cash and US$3.3 billion in undrawn credit lines. Shareholder equity stood at US$15.7 billion after bond redemptions and dividends. The board proposed a final dividend of 30 Singapore cents per share, bringing the total FY2024/25 dividend to 40 cents, or about US$1.2 billion.

SIA Group remains cautiously optimistic, citing macroeconomic uncertainty and geopolitical tensions. The airline aims to grow through its dual-brand model, digital innovation including AI, premium cabin upgrades, and strategic partnerships. With strong liquidity and a diversified Asia-Pacific network, SIA says it is well-positioned to capture future demand while maintaining profitability.

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