Singapore Air says demand to counter growing competition

Yahoo

20-02-2025

By Danny Lee
(Bloomberg) – Singapore Airlines' net income jumped in the third quarter due to a one-time gain, with the carrier predicting robust travel demand will help it weather headwinds from heightened competition.
Net income more than doubled from a year earlier to S$1.62 billion ($1.2 billion) in the three months ended Dec. 31, with the result including the S$1.1 billion gain from the Air India-Vistara deal that completed in November. Excluding that one-time item, net income fell 20%, according to Bloomberg News calculations.
Revenue rose 2.7% to a record S$5.2 billion in what's typically the strongest period for sales.
Singapore Air is getting squeezed by intensifying competition in key markets as a boom in global travel spurs rivals to increase the number of flights and routes. At the same time, the carrier reiterated that the sector continues to face a raft of challenges that cloud the outlook.
Demand is expected to stay healthy heading into the last quarter of the financial year, 'even as the operating landscape continues to be competitive,' the airline said in a statement. 'The airline industry faces headwinds such as cost inflation, supply chain constraints, geopolitical tensions, economic uncertainty, and increased competition.'
Total expenses rose 2.6% $4.6 billion, helped by a decline in jet fuel costs.
Yields, a key metric of profitability, slipped by 4.5% to 10.7 Singaporean cents per kilometre. In the final three months of last year, it carried 10.2 million passengers, over 160,000 more than the same period in 2019.
(Updates with additional details throughout)
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