Singapore Airlines reported a nearly 69% decline in third-quarter net profit, attributed to the absence of the previous year’s one-off gain from the Air India-Vistara merger and increasing fuel costs. Losses from associated companies surged by S$163 million to S$178 million, reflecting a full-quarter share of Air India’s losses. The recent merger established Vistara-Air India as a dominant carrier in India’s expanding markets.
Rising global travel demand led to extended use of older aircraft, elevating fuel, maintenance, and leasing costs. Overall expenditure grew to S$4.71 billion, primarily due to higher non-fuel costs and increased net fuel costs driven by firmer prices and increased volumes. Despite cost escalation, Singapore Airlines achieved a net profit of S$505 million for the quarter ending December 31, a marked decrease from S$1.63 billion a year prior.
Passenger load factor improved slightly to 87.5% from 87.2% in the previous year, with positive expectations due to the robust passenger travel market countering cargo softness. Although competitive pressures were anticipated as airline capacity in Asia rebounded, some carriers maintained higher yields. Total revenue for the quarter rose by 5.5% to S$5.51 billion. Analysts observe that region-wide travel demand remains strong, illustrated by similar trends at Japan’s ANA.