Singapore Airlines Group (SIA) has reported a steady start to its financial year with a first-quarter operating profit of S$405 million, despite rising non-fuel costs and pressure on both passenger and cargo yields.
While overall group revenue rose 1.5% year-on-year to S$4.79 billion, net profit fell sharply by nearly 59% to S$186 million, largely due to lower interest income and losses recorded from associated companies, including newly consolidated Air India figures.
Passenger Recovery Continues
Despite the headwinds, SIA and its low-cost carrier Scoot collectively carried a record 10.3 million passengers during the three months ending 30 June 2025 – a 6.9% increase on the same period last year.
However, passenger yields slipped 2.9% due to intensified global competition as more carriers ramped up capacity.
The group’s passenger load factor reached 87.6%, supported by demand ahead of the mid-year travel peak. Still, total expenditure increased by 3.2%, mainly due to an 8.5% rise in non-fuel costs attributed to inflationary pressures.
Strategic Moves and Future Outlook
The group continues to position itself for long-term growth. During the quarter, SIA signed new agreements for Sustainable Aviation Fuel (SAF) and SAF certificates, aiming to cut over 9,500 tonnes of CO₂ emissions.
Additionally, a proposed joint venture with Malaysia Airlines received conditional approval from Singapore’s competition authority and awaits final clearance from Malaysia.
In response to Jetstar Asia’s impending closure, Scoot will expand regional capacity to destinations including Labuan Bajo, Medan and Okinawa, reinforcing Singapore’s hub position.
The group also formed a new tourism partnership with the Mandai Wildlife Group to boost inbound leisure traffic.
