SIA reports 48.5% YoY drop in earnings to S$742 million due to weaker operating performance

SINGAPORE: Singapore Airlines (SIA) has reported a 48.5% year-on-year (YoY) drop in earnings for the first half of the 2024/2025 financial year, with profits falling to S$742 million due to weaker operating performance.

Contributing factors included lower net interest income and a loss on the disposal of aircraft, spares, and space engines, compared to a gain in the previous year, The Edge Singapore reports.

Although SIA saw a 4.7% YoY increase in revenue, which reached S$9.5 billion, higher competition and more passenger capacity in key markets led to a 5.6% decline in yields.

These market pressures affected yield, which measures revenue per passenger or cargo unit. The air cargo sector also struggled, with yields dropping 13.4% due to a recovery in belly-hold capacity.

Expenditure rose 14.4% YoY to S$8.7 billion, primarily due to a 19.6% increase in net fuel costs and a 12.1% rise in non-fuel expenses.

Net fuel costs totalled S$2.73 billion, driven by higher fuel uplift and a lower fuel hedging gain, although fuel prices fell slightly by 0.4%.

Operating profit dropped 48.8% YoY to S$796 million.

SIA has announced an interim dividend of 10 cents per share for the half-year ending September 30, which will be paid on Dec 11 to shareholders registered by Nov 27.

Looking ahead, the airline expects strong demand for air travel in the second half of FY2024/2025, stating the operating landscape will remain competitive.

As such, SIA plans to stay “nimble and agile,” adapting its passenger network and capacity to meet changing demand patterns. /TISG

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