The Singapore Airlines Group is promoting its “strong position” to tackle macroeconomic challenges amid declining operating profits for the full year.
The airline group, which consists of mainline operators SIA and low-cost unit scooters, says it is “still on alert” and is monitoring the economic situation.
“The group relies on powerful foundations, including dual-brand portfolio airlines, a well-delivered global network, a robust balance sheet, a talented, dedicated workforce, and industry-leading digital capabilities to navigate these challenges,” he said.
This is the first time the SIA Group has publicly hinted at ongoing economic uncertainty in the wake of the US government's tariff policy that sent the global economy under the cloud.
“While global uncertainty remains, the group is in a strong position to focus on profitability, pursuing growth opportunities and ensuring long-term value creation for shareholders,” he adds.
For the year ended March 31, SIA Group reported operating profit of SG$1.7 billion ($1.3 billion), down 37% from record operating profit for the same period last year.
The group attributes it to a decline to lower yields, which is a result of “enhancing competition” and increased costs. Passenger yields fell 5.5% per year, offsetting 8% jumps in passenger volume to 39.4 million.
As a result, this increased the group's revenue by 2.8% to S$19.5 million. Passenger revenues increased by just 1% for the full year.
Costs rose 9.5% to SGD 1.555 billion, while non-fuel costs rose 11%. The group said it took cost control measures annually, including digitalization and “productivity improvement initiatives.”
According to airline business data, group net profit rose 3.9% to SGD 2.788 billion.
The rise was the result of a non-cash accounting increase of S$1.1 billion since the completion of the merger between former joint venture Vistara and Air India in November 2024. The merger gave SIA a 25.1% stake in newly registered Air India.
The SIA Group concluded its fiscal year with 205 aircraft. The SIA operated 152 aircraft, with 53 aircraft at Scoot.
