Singapore Airlines Group has touted its “strong position” to tackle macro-economic challenges, amid a drop in its full-year operating profit.
The airline group, which comprises mainline operator SIA and low-cost unit Scoot, says it “remains vigilant” and is monitoring economic conditions.
“The group will rely on its strong foundations, including dual-brand portfolio airline, well-diversified global network, a robust balance sheet, talented and dedicated workforce, as well as industry-leading digital capabilities to navigate these challenges,” it states.
It is the first time SIA Group has publicly alluded to the ongoing economic uncertainty in the wake of the US government’s tariff policies, which has sent the global economy under a cloud.
”While global uncertainties remain, the group is in a strong position to focus on profitability, while pursuing growth opportunities and ensuring long-term value creation for shareholders,” it adds.
For the year ended 31 March, SIA Group reported an operating profit of S$1.7 billion ($1.3 billion), down 37% from the record operating profit in the year-ago period.
The group attributed the decline to lower yields – a result of “intensified competition” – and increased costs. Passenger yields fell 5.5% in the year, offsetting an 8% jump in passenger volumes to 39.4 million.
Consequently, this led to a 2.8% increase in group revenue to S$19.5 million. Passenger revenue for the full year was up just 1%.
Costs increased 9.5% to S$1.55 billion, led by an 11% rise in non-fuel expenses. The group says it undertook cost management measures during the year, including through digitalisation and “productivity improvement initiatives”.
Group net profit was up 3.9% to S$2.78 billion – the airline’s highest net profit post-pandemic, according to Airline Business data.
The uptick was the result of a S$1.1 billion non-cash accounting gain from the completion of the merger of former joint venture Vistara and Air India in November 2024. The merger also gave SIA a 25.1% stake in the newly-enlarged Air India.
SIA Group ended the fiscal year with 205 aircraft. SIA operated 152 aircraft, while Scoot had 53 aircraft.
