In the cutthroat theatre of modern aviation — where fuel hedging is a gamble, mergers flirt with meltdowns, and a viral video of a lukewarm in-flight meal can derail a quarter — Singapore Airlines (SIA) has done the near-impossible: it has posted a record net profit of S$2.78 billion for the fiscal year ending 31 March 2025.
And yes, that’s billion with a capital ‘B’ — a number that would make most airline CEOs choke on their caviar.
This isn’t just a ledger line. It’s a war cry. It’s a victory lap. And it’s fuelled in no small part by a tidy, one-off non-cash accounting gain of S$1.1 billion, thanks to the successful merger of Air India and Vistara. This corporate matrimony gave SIA a 25.1% slice of the world’s fastest-growing aviation market.
It’s the stuff balance sheet dreams are made of. But make no mistake — this wasn’t dumb luck or the result of an accountant’s fever dream. This was a year of grit, gambles, and guts.
Making Cents in the Sky
Let’s talk topline: group revenue climbed S$527 million (2.8%) year-on-year to a record S$19.54 billion. That’s not just lipstick on a pig — that’s real growth, underpinned by the resounding return of global air travel. SIA and its cheekier low-cost cousin Scoot collectively carried 39.4 million passengers — up a handsome 8.1%.
But not all that glitters is gold. Passenger yields slid 5.5% to 10.3 cents per revenue passenger-kilometre, thanks to the industry’s penchant for overcapacity. Competitors were throwing in more seats than a last-minute wedding caterer. Still, SIA’s passenger revenue held firm at S$15.85 billion, a respectable 1% bump.
On the cargo front — where demand for perishables and e-commerce gave a welcome lift — revenue jumped S$94 million, up 4.4%. It seems people still want their durians and designer handbags delivered yesterday. However, increased competition saw cargo yields dip by 7.8%, proving again that you can lead a shipment to market, but you can’t make it pay more.
Costs, Cuts, and Clever Accounting
The Group’s total expenditure ballooned by S$1.55 billion (9.5%) to S$17.83 billion, with non-fuel costs jumping 11%. That’s inflation, supply chains, and just plain business in 2025.
Fuel costs — the great beast of the airline budget — were another mixed bag. Net fuel costs rose S$309 million due to a 6.1% bump in volume uplift. But here’s the twist: fuel prices dropped 8.5%, delivering some balm to the burn.
Still, operating profit slid 37.3% to S$1.709 billion. On paper, that looks grim. But dig deeper and see this is the product of strategic spend, not spiralling debt. When investing in the future, you’ve got to part with the present.
Air India-Vistara: The Billion-Dollar Marriage
Let’s not mince words — this year’s real showstopper was the windfall from the Air India-Vistara merger. Finalised in November 2024, the deal delivered a non-cash accounting gain of S$1.1 billion to SIA, cushioning what could’ve been a tricky year for operating margins.
It also gave SIA a quarter-stake in a supercharged Air India, giving it direct exposure to India’s booming aviation market—a region where middle-class ambitions and regional connectivity are growing faster than you can say “Mumbai to Milan.”
This wasn’t just a lucky bounce. This was a play straight out of the Temasek playbook — long-term, high-stakes, and potentially game-changing.
Second Half Surge
The second half of the year saw SIA post its highest-ever half-year revenue — S$10.04 billion, up 1.9% year-on-year. Passenger numbers kept ticking upward, but competition was a bit harder. Passenger yields dropped 4.5%, and cargo yields fell 2.1%.
Still, the net profit for H2 surged by a staggering 65% to S$2.036 billion, thanks again to that blockbuster merger accounting. That’s the kind of performance that lets you swagger into an AGM.
Dividend Delight and a Tip of the Hat to Staff
It’s time to break out the bubbly if you’re a shareholder. SIA’s Board has recommended a final dividend of 30 cents per share, bringing the full-year haul to 40 cents. That’s S$1.2 billion being returned to investors — a show of strength if ever there was one.
But it’s not just shareholders popping corks. Staff will receive a bonus equivalent to 7.45 months’ salary, resulting from a formula tied to profits. In an industry where turbulence often tests loyalty, this is an unequivocal “thank you.”
Lounges, Luxury, and a Lick of Paint
SIA isn’t resting on its laurels. In 2024, it committed S$1.1 billion to revamping its long-haul Airbus A350-900 fleet, complete with a new First Class product promising to redefine luxury—or at least keep up with Qatar.
The lounges are getting a glow-up, too. A S$45 million refresh of SilverKris and KrisFlyer Gold lounges at Changi Terminal 2 is underway, with more space, more food, and hopefully fewer people hogging the massage chairs.
And yes, AI is the new black. SIA is heavily pursuing partnerships with Salesforce and OpenAI to bring AI into customer service and operations. Expect chatbots that don’t make you weep and flight experiences that feel more personal than a Christmas card from your nan.
A Fleet with Feet on the Ground
As of March 2025, the SIA Group’s fleet consisted of 205 aircraft, averaging seven years and eight months, positively sprightly by industry standards.
They’ve placed orders for 78 new aircraft, including Boeing 777-9s and Airbus A350 freighters, showing they’re not just growing — they’re future-proofing.
The passenger network spans 128 destinations across 36 countries, while Scoot continues to make bold moves with routes to Vienna and Iloilo City. If there’s a runway and a coffee shop nearby, odds are SIA’s looking at it.
SG60: Celebration with Heart
As Singapore celebrates 60 years of independence, SIA has rolled out SG60-themed promotions, bonus miles, and charitable campaigns.
Notably, it’s committed to raising and matching S$1.3 million for two local charities — AWWA and Rainbow Centre — supporting children and youth with developmental needs. This July, they’re also opening their training centre to over 600 disadvantaged Singaporeans. It’s more than good PR — it’s flying the flag properly.
Eyes on the Horizon
Global turbulence remains, with geopolitical tensions, supply chain snarls, and economic jitters looming large. But SIA has a habit of rising through adversity, and it enters FY2025/26 with strong fundamentals and a chest full of war medals.
With its dual-brand model, re-energised fleet, strategic stakes in India, and digital overhaul underway, the Group is well-positioned not just to weather the headwinds but to soar.
As the old aviation saying goes: the runway ahead is clear — if you’ve got the altitude.
By Susan Ng
