Press Release
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Highest quarterly revenue on record passenger carriage, despite declining yields amid stiffer competition
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Net fuel costs down 9.8% on the back of lower fuel prices
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Unit non-fuel cost remained under control with effective cost management mitigating inflationary pressures
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Net profit boosted by a one-off $1,098 million non-cash accounting gain following completion of the Air India-Vistara merger in November 2024
PRAVASISAMWAD.COM
The SIA Group revenue reached a record $5,219 million in the three months ended 31 December 2024, up $137 million (+2.7%) from the same period last year, spurred by robust demand for air travel in the third quarter of FY2024/25.
Passenger flown revenue improved by $70 million (+1.7%), with SIA and Scoot carrying a quarterly record of 10.2 million passengers, up 7.2% from the third quarter of FY2023/24.
Group passenger load factor fell by 1.0 percentage point to 87.2%, as the 7.2% growth in passenger traffic lagged the capacity expansion of 8.5%.
Greater competition due to industry capacity injection continued to put pressure on yields, which dipped 4.5% to 10.7 cents per revenue passenger-kilometre.
Cargo flown revenue increased by $54 million (+9.7%), with loads up 14.6% year-on-year, bolstered by robust demand due to strong e-commerce activity, a step up in freighter charters, and a boost in perishables traffic.
Cargo capacity rose 12.8% while the cargo load factor was 0.9 percentage points higher at 56.4%, with yields 4.5% lower. Group expenditure grew $117 million (+2.6%) to $4,590 million, driven by higher non-fuel expenditure of $258 million (+8.6%), and partially offset by the decline in net fuel cost of $142 million (-9.8%).
Effective cost management measures kept the rise in non-fuel expenditure below the growth in overall capacity (+10.1%), despite inflationary pressures.
Net fuel cost was lower due to a 20.9% drop in fuel prices before hedging (-$359 million), partially offset by the higher volume uplifted (+$162 million), and the swing from a fuel hedging gain in the previous year to a loss (+$98 million).
Consequently, the Group recorded an operating profit of $629 million for the third quarter of FY2024/25, $20 million (+3.3%) higher than the same quarter in the previous year. The Group’s net profit rose $967 million (+146.7%) to $1,626 million, predominantly due to the $1,098 million non-cash accounting gain resulting from the disposal of Vistara, following the airline’s merger with Air India in November 2024.
April to December 2024 – Profit and Loss Group revenue reached a record $14,716 million for the nine months to 31 December 2024, up $472 million (+3.3%) compared to the same period in the previous year. This was led by the rise in passenger flown revenue of $189 million (+1.6%) and cargo flown revenue of $96 million (+5.9%). Heightened competition resulted in lower passenger yields (-6.4%) and cargo yields (-10.2%) year-on-year.
Operating expenditure increased $1,210 million (+10.0%), in line with the overall capacity expansion of 10.5%. Net fuel cost was $305 million (+8.2%) higher mainly from an increase in volume uplifted (+$437 million) and lower fuel hedging gain (+$274 million), partially offset by an 8.1% fall in fuel prices (-$367 million). As a result, the operating profit fell $738 million (-34.1%) to $1,425 million.
Despite the lower operating profit, the Group net profit was $268 million (+12.8%) higher on the back of the non-cash accounting gain following the merger of Vistara with Air India in November 2024.
Balance Sheet
The Group’s shareholder equity stood at $15.4 billion as of 31 December 2024, down $1.0 billion from 31 March 2024, primarily due to the redemption of the remaining Mandatory Convertible Bonds (MCBs) in June 2024.
Total debt balances remained at $13.3 billion, with the debt-equity ratio rising from 0.82 times to 0.87 times. Cash and bank balances declined by $3.0 billion to $8.3 billion, mainly due to the MCB redemption ($1.7 billion), FY2023/24 final dividend and FY2024/25 interim dividend payments ($1.4 billion), capital expenditure disbursements ($1.4 billion), as well as the investment in Air India ($0.8 billion).
This was partially offset by $3.2 billion in net cash generated by operations. The Group also held $1.3 billion in fixed deposits with tenors exceeding 12 months, classified under other assets. In addition, the Group currently maintains access to $3.3 billion of undrawn committed lines of credit.
The Group’s balance sheet remains among the strongest in the industry. FLEET AND NETWORK DEVELOPMENT As at 31 December 2024, the Group’s operating fleet comprised 207 passenger and freighter aircraft with an average age of seven years and six months.
SIA added one Airbus A350-900 in December 2024, giving it 146 passenger aircraft1 and seven freighters. Scoot added three Embraer E190-E2 aircraft in the third quarter, bringing its operating fleet to 54 passenger aircraft2.
The Group has 81 aircraft on order3. SIA launched services to Beijing Daxing (China) in November 2024, while Scoot began Embraer E190-E2 operations to Malacca (Malaysia) in October 2024 and Phu Quoc (Vietnam) in December 2024.
As of 31 December 2024, the Group’s passenger network covered 129 destinations in 36 countries and territories4, with SIA serving 80 destinations and Scoot serving 72 destinations.
The cargo network reached 133 destinations in 37 countries and territories. Following the launch of flights to Padang (Indonesia) and Shantou (China) in January 2025, Scoot will introduce twice-weekly services to Iloilo City (the Philippines) on 14 April 2025, and increase that to four-times weekly from June 2025. Scoot will also start thrice-weekly direct services to Vienna (Austria) on 3 June 2025.
SIA will ramp up services to Brisbane (Australia), Colombo (Sri Lanka), and Johannesburg (South Africa) during the Northern Summer 2025 operating season (30 March 2025 to 25 October 2025).
STRATEGIC INITIATIVES
The Group continues to invest in its products and services to enhance the customer experience. In November 2024, SIA announced a $1.1 billion multi-year programme to install its all-new long-haul cabin products across its Airbus A350-900 long-haul and ultra-long-range (ULR) fleet, redefining the premium travel experience across its network
This includes the introduction of SIA’s new First-Class cabin in its seven A350-900ULR aircraft, setting new industry benchmarks for travel on the world’s longest routes. SIA further elevated its Suites and First-Class experience by exclusively offering the Cristal 2015 champagne from 1 December 2024
SIA and Tata Sons completed the merger of Air India and Vistara on 12 November 2024, giving SIA a 25.1% stake in the enlarged Air India Group. The partners are firmly committed to supporting the growth and success of the Air India Group, which has a strong presence across all key segments of the Indian market.
In the third quarter of FY2024/25, SIA strengthened its airline partnerships. Air India and SIA added 51 new codeshare destinations from October 2024, offering customers enhanced travel options between Singapore and India, as well as beyond5. Both airlines are exploring opportunities to deepen their strategic relationship across a wide range of commercial activities.
Garuda Indonesia and SIA increased flight frequencies between Jakarta (Indonesia) and Singapore, enhancing capacity and connectivity between the two South East Asian Hubs.
They also expanded their codeshare partnership to cover 390 weekly services, including 362 weekly services between Singapore and Indonesia.
The Group is firmly committed to its sustainability goals, recently signing a Memorandum of Understanding (MoU) to potentially source neat sustainable aviation fuel (SAF) from Aether Fuels (Aether).
The agreement outlines the Group’s intention to procure neat SAF from Aether for five years when its plants begin commercial production, with an option for a five-year extension.
OUTLOOK
The demand for air travel is expected to stay healthy heading into the last quarter of FY2024/25, even as the operating landscape continues to be competitive.
The Group remains nimble and agile, adjusting its network and capacity as it navigates the industry-wide normalisation of yields and capacity.
While e-commerce and perishables traffic are expected to hold up cargo demand, yield moderation is likely to persist as airlines across the industry resume passenger flights and increase their bellyhold cargo capacity, and as shippers move to lock down their space requirements and rates in advance.
The Group will closely monitor market developments and optimise freighter deployment as needed.
The airline industry faces headwinds such as cost inflation, supply chain constraints, geopolitical tensions, economic uncertainty, and increased competition.
The Group is well-positioned to navigate these challenges thanks to its robust foundations, which include its strong financial standing, a talented and dedicated workforce, and industry-leading digital capabilities.
Strategic initiatives such as win-win commercial partnerships with like minded carriers, including recent developments in South East Asia and India, allow the Group to directly participate in fast-growing markets and give its customers more options and greater value.
Additionally, the Group’s airline portfolio with two industry-leading carriers puts it in a strong position to capitalise on revenue and growth opportunities in different traffic segments while maintaining cost discipline.
The Group is also firmly committed to continue to invest in and innovate across the three pillars of its brand promise – service excellence, network connectivity, and product leadership. This will enhance the end-to-end travel experience, help to retain customer loyalty, and reinforce the Group’s industry-leading position.
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