Singapore Airlines Reports Record Quarterly Revenue Amid Robust Demand

Singapore Airlines announced on Thursday Feb. 20, a record quarterly revenue, driven by strong demand for air travel at the end of last year. Despite this, the airline noted that its capacity expansion exceeded passenger growth, exerting downward pressure on airfares.

Facing stiff competition in the region, where Asian airlines are ramping up capacity post-pandemic, Singapore Airlines anticipates that demand will remain robust in the January-March quarter.

The airline reported a 4.5% decline in yields, a measure reflecting average airfare, during the third quarter. This decrease occurred as the airline added more seats than the growth in passenger numbers.

Group revenue rose by 2.7% to a record S$5.2 billion (approximately $3.88 billion), up from the previous year. Cargo revenue saw a significant increase of 9.7% year-on-year, compared to a 1.7% increase in passenger revenue for the quarter. The surge in cargo revenue was supported by strong e-commerce activity, additional freighter charters, and an increase in the transportation of perishable goods.

As a leading air freight carrier in Asia, Singapore Airlines has capitalized on the rising volumes of e-commerce shipments from China and the surrounding region.

The airline’s net profit for the quarter ending December 31 2024 more than doubled, reaching a record high, bolstered by a one-time gain from the merger of Air India and Vistara.

Singapore Airlines, which held approximately 49% of Vistara, merged with Air India last November to establish a leading full-service airline for India’s domestic and international markets. Following the merger, Singapore Airlines now holds a 25.1% stake in the Air India group, with the Tata conglomerate owning the remaining 74.9%.

The net profit stood at S$1.63 billion ($1.22 billion), up from S$659 million the previous year. This increase included a significant one-off gain of S$1.10 billion from the Air India-Vistara merger. ($1 = 1.3386 Singapore dollars)

The Singapore Airlines Group encompasses the flagship carrier and its budget airline, Scoot.

Sources: AirGuide Business airguide.info, bing.com, reuters.com