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Singapore Airlines reported a sharp fall in net profit for the December quarter, mainly due to the absence of a one-time gain recorded last year and losses from its 25.1 per cent stake in Air India. Net profit declined 69 per cent year-on-year to S$505 million, about USD 399 million. However, operating performance remained strong, with record quarterly revenue of S$5.51 billion and a 26 per cent rise in operating profit. Passenger demand stayed firm, though cargo revenues weakened and operating costs increased.
Singapore Airlines posted a significant drop in net profit for the third quarter of its financial year, even as its core operations remained strong. The airline reported net profit of S$505 million, approximately USD 399 million, for the October to December quarter, marking a 69 per cent decline compared to the same period last year. Advertisement
The fall was mainly due to the absence of a one-off accounting gain recorded previously from the merger of Vistara into Air India. In addition, the airline recognised losses from its 25.1 per cent stake in Air India, which began contributing to its financial results after the integration of the joint venture was completed in late 2024. These factors significantly affected the bottom line.
Despite the drop in net earnings, the airline's operating performance improved. Revenue for the quarter rose to a record S$5.51 billion, supported by sustained passenger demand and improved ticket pricing. Operating profit increased 26 per cent year-on-year to S$792 million.
Passenger traffic remained strong. Singapore Airlines and its low-cost arm Scoot together carried 10.9 million passengers during the quarter, up more than 6 per cent from a year earlier. Passenger load factors remained healthy, and yields improved modestly, indicating steady demand across key routes.
However, cargo operations were weaker during the period. Cargo revenue declined more than 5 per cent due to softer freight yields and increased industry capacity. The group's total expenditure rose nearly 3 per cent, mainly because of higher fuel costs, maintenance expenses and overall capacity expansion as more flights were added across the network.
The airline stated that travel demand remains firm heading into the final quarter of its financial year. It also confirmed plans to launch services to Riyadh in June, which is expected to strengthen its Middle East connectivity and support network growth.
Singapore Airlines has continued expanding capacity in response to strong travel demand across Asia and other key markets. At the same time, it remains exposed to the performance of Air India, where restructuring and integration efforts are ongoing under Tata Group ownership.
Source Reuters
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