Boosted by Air India-Vistara merger, SIA posts historic profit despite falling fares and high costs
Singapore Airlines (SIA) posted a record net profit of S$2.8 billion for the financial year ending March 31, 2025, driven by a significant one-off gain from the merger between Vistara and Air India. Despite declining operating profits due to increased competition and costs, the airline announced a generous 7.45 months’ profit-sharing bonus for employees.
Merger Gain Drives Record Earnings
SIA’s net profit rose 3.9% from S$2.68 billion to a record S$2.8 billion, largely due to a one-off non-cash gain of S$1.1 billion from the November 2024 merger of its 49% stake in Vistara with Air India. The merger now grants SIA a 25.1% stake in the newly combined entity, giving it direct access to India’s fast-growing aviation market.
This one-time gain also contributed to a 65% increase in net profit for the second half of FY2025, bringing total annual revenue to S$19.6 billion—up 2.8% year-on-year.
Despite the impressive bottom line, SIA’s operating profit fell 37% to S$1.71 billion as rising fuel and other operational expenses outpaced modest revenue gains. Passenger yields fell 5.5% as global competition intensified and airlines rapidly expanded capacity, leading to softer ticket pricing.
Cargo revenues rose 4.4% on the back of e-commerce growth and Red Sea shipping disruptions, although freight yields dipped 7.8% due to market competition.
Generous Bonus, Cautious Outlook
SIA will reward its employees with a profit-sharing bonus equivalent to 7.45 months’ salary—down slightly from 7.94 months last year, but still among the highest in the industry. The bonus is based on a longstanding formula agreed upon with staff unions.
A final dividend of 30 Singapore cents per share was also declared, lower than last year’s 38 cents, reflecting cautious financial positioning despite record net earnings.
The SIA Group transported 29.4 million passengers over nine months, a 9.6% year-on-year increase. However, Scoot’s metrics declined slightly, with a 0.3% fall in volume and a 2.9 percentage point dip in load factor. Overall, the group’s passenger load factor stood at 86.8%, while cargo load factor dropped to 54.9%.
The airline operates 145 passenger aircraft and seven freighters, while Scoot runs 53 planes. Their networks span 128 passenger and 132 cargo destinations.
SIA warned of a “challenging operating environment” ahead. Risks include US-led tariffs, geopolitical tensions, global economic uncertainty, and ongoing supply chain issues. While the merger deal and fleet strength position SIA for future growth, consumer and business confidence may be tested in the coming quarters.
Economists also flagged potential threats from tariff hikes on sectors like semiconductors and pharmaceuticals, which could impact both passenger and cargo volumes.
Singapore Airlines’ historic earnings reflect strong strategic moves such as its Indian market entry via the Vistara merger. However, declining operating margins and global uncertainties signal that sustained profitability will require careful navigation. As regional connectivity and e-commerce evolve, SIA remains well-placed but must remain vigilant amid unpredictable skies.
Sources: CNA (2025), The Business Times (2025)
Keywords: Singapore Airlines Profit, SIA Bonus 2025, Air India Merger, Aviation Financial Results, Airline Competition, Passenger Revenue
