Singapore's soaring ambitions: Changi Airport and SIA prepare for the next takeoff
The airport already seems to have excess capacity. With a capacity to handle 90 million passengers annually, Changi recorded 68.4 million passenger movements in the financial year 2024/25 ended March 31, according to a Changi Airport Group (CAG) press release dated May 24. That was more than any recent year. Passenger movements totalled 62.5 million in 2023/24 and 42.6 million in 2022/23 after dropping during COVID to 5.2 million in 2021/22 and 1.1 million in 2020/21 from 62.9 million in 2019/20, according to the CAG 2024 annual report. Changi Airport's soaring profit
However, despite operating below capacity, the airport is a goldmine. Net profit jumped from S$431 million in 2023/24 to S$841 million in 2024/25. Revenue grew from S$2.7 billion to S$3 billion in tandem with the rise in passenger traffic. One of the world's busiest airports, Changi now links Singapore directly to about 170 cities globally, with close to 100 airlines operating more than 7,200 flights weekly.
Passenger movements were much lower – 53.7 million a year – when the Terminal 5 construction project was announced by the then Prime Minister Lee Hsien Loong in 2013. He said then that the new terminal would double the airport's passenger capacity. Changi didn't have to be so big at the time, but the planners were building for the future. See also Education: Goodbye Streaming, Hello Full Subject-Based Banding
Aviation is a business run on high hopes and big dreams. The business just had a bumper year. 'Airlines delivered a combined net profit of $32.4 billion in 2024 when passenger numbers reached a new high of 4.8 billion,' says the International Air Transport Association (IATA) in its 2025 Annual Review. SIA Group profit and revenue
The SIA Group rode this wave of growth with resounding success. It posted a record net profit of S$2.8 billion in 2024/25, bolstered by a one-off non-cash gain of S$1.1 billion from the Air India–Vistara merger. Together, SIA and its low-cost subsidiary Scoot carried a record 39.4 million passengers while group revenue reached a new high of S$19.54 billion.
As of March 31, 2025, the SIA Group operated a fleet of 205 aircraft with an average age of seven years and eight months. This included 145 passenger planes and seven freighters under SIA, and 53 passenger aircraft under Scoot. In April 2025, the group added one Airbus A321neo and one Boeing 787-8 — and, as of May 1, the group had another 78 aircraft on order. Its combined passenger network spanned 128 destinations across 36 countries and territories, with SIA serving 79 destinations and Scoot flying to 71. See also A four-step video in renewed attempt for clean toilets
Both Changi Airport and SIA continue to shine on the global stage. Changi was named Skytrax World's Best Airport in 2025, while Singapore Airlines ranked second in Skytrax's 2024 list of the world's best airlines, just behind Qatar Airways. Fierce competition
Yet, the competition is fierce. In Northeast Asia, Hong Kong International Airport and Incheon International Airport (Seoul) are major contenders, supported by carriers like Cathay Pacific, Korean Air, and Asiana Airlines. Within Southeast Asia, Changi faces regional rivals in Bangkok Suvarnabhumi, Kuala Lumpur International, and Jakarta Soekarno-Hatta airports. Airlines such as Thai Airways, Malaysia Airlines, Garuda Indonesia, and fast-growing low-cost carriers like AirAsia and Lion Air offer aggressive pricing and expansive networks. Further afield, Middle Eastern giants like Dubai International and Doha's Hamad International, along with their flagship carriers Emirates and Qatar Airways, also compete heavily in the long-haul and transit passenger segments.
Despite this, Singapore's aviation ecosystem enjoys key competitive advantages. Changi is widely praised for its efficiency, passenger experience, and seamless connectivity. SIA's reputation for exceptional service, a modern fleet, and strategic global partnerships enhances its appeal to international travellers.
Looking ahead, growth prospects remain strong. The rise of the Asian middle class, increasing disposable incomes, and an appetite for international travel are likely to fuel sustained demand. For Singapore, a well-connected aviation hub is vital—not just for tourism, but for trade, investment, and its standing as a global business centre.
'The aviation ecosystem now contributes 5% of our GDP, and creates and sustains many good jobs for Singaporeans,' as Prime Minister Lawrence Wong said at the Terminal 5 groundbreaking ceremony on May 14.
Nonetheless, challenges persist. Geopolitical tensions, economic uncertainty, and the aviation industry's urgent need to adopt sustainable practices demand vigilance and adaptability. Environmental pressures are rising: airlines are under scrutiny to reduce emissions. In response, SIA is exploring sustainable aviation fuels and acquiring more fuel-efficient aircraft, while Changi is rolling out energy-saving measures and tapping renewable energy sources.
The airline and the airport's efforts to reduce carbon emissions and save energy stem from the same vision that underpins Terminal 5. This is more than just infrastructure expansion—it is a statement of intent. Singapore is building for the future. The terminal may seem outsized for today, but it is designed for tomorrow, befitting a nation that will continue to grow.
Featured image by Depositphotos (for illustration purposes only)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
5 hours ago
- CNA
Around 55,000 BTO flats to be launched between 2025 and 2027
Around 55,000 Build-To-Order flats will be launched in the next two years, a 10 per cent increase from previously expected. The National Development Minister says there are also plans to build more BTO flats that will be ready faster over the next two years. New technlogy will also be used to upkeep public housing flats under the refreshed Home Improvement Programme. Alexandra Anand with more.
Business Times
6 hours ago
- Business Times
Singapore's projected data centre capacity growth lowest among Asia-Pacific: PwC report
[SINGAPORE] Land limitations, as well as policies that support green data centres in Singapore, have constrained the city-state's data centre capacity growth, indicated a recent PwC report. Singapore's data centre capacity is projected to have an compound annual growth rate (CAGR) of 8 per cent between 2024 and 2028, the lowest rate out of 14 Asia-Pacific markets analysed in the report. However, it highlighted that the Johor-Singapore Special Economic Zone (SEZ) could potentially be a model for data centre operators looking to set up their assets in dual locations. While Singapore has limited land and sources of renewable energy, Johor presents a compelling value proposition with more affordable land, lower construction costs and reduced operating expenses. This sets the stage for a dual-location strategy in which low-latency artificial intelligence (AI) applications can be hosted in Singapore, where robust digital infrastructure supports real-time responsiveness and minimises downtime, stated the report. Meanwhile, high-latency training workloads can be located in Johor, where energy and space constraints are less severe. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up 'This allows corporations to conduct high-latency AI training with scale in these neighbouring regions while situating critical, last-mile, low-latency AI inference workloads in Singapore,' stated the report. Low-latency computing supports AI applications that require near-instantaneous processing and response. Hence, it would be more beneficial for data centres that support these applications to be located closer to data sources for reduced response times and improved performance. High-latency computing involves teaching a model to identify patterns or perform tasks by processing vast datasets. It is highly computer-intensive, hence, scale and power access become the primary considerations. With strong subsea cable connectivity linking both markets to global hubs, as well as tax incentives and access to upgraded infrastructure being offered for companies establishing data centres in the region, the report noted that 'the SEZ has the potential to serve as a model for regional data centre integration – enabling workload specialisation and shared benefits across neighbouring territories'. Data centres in Asia-Pacific Across Asia-Pacific, data centre capacity is expected to more than double from 12.2 gigawatts (GW) of live capacity at the end of 2024 to 26.1 GW by 2028, said the report. The region's AI-related data centre capacity is expected to grow at a CAGR of 21 per cent from 2.2 GW in 2024 to 4.8 GW in 2028. Indonesia, Malaysia, India and Japan have emerged as the frontrunners in the report, with a forecasted CAGR of at least 30 per cent over the same period. However, the report noted that access to energy continues to pose a growing concern for many territories. 'The energy demands of AI workloads are pushing data centre operators to seek locations with stable, high-capacity electricity supply and low risk of disruption. Energy costs and sustainability targets are also front of mind – prompting operators to favour areas with affordable electricity and access to renewable sources,' stated the report. It also added that a more fundamental issue is access to the energy grid itself, as grid readiness will determine whether operators can reliably tap into imported energy easily. Renewable energy alone is may not be enough sufficient to power the energy consumption demands of data centres. The electricity consumption of the top six Asia-Pacific territories by data centre capacity – China, Japan, Australia, India, Singapore and South Korea – is expected to grow by 16 per cent annually until 2030, reaching between 750 and 800 terawatt-hour (TWh). Renewable energy generation capacity, however, is expected to increase at a lower pace of 13 per cent annually. PwC analysis showed that the current renewable energy gap of between 200 and 300 TWh may widen to more than 500 TWh. 'So, while renewable energy remains central to powering data centres more sustainably, it's unlikely to be enough to meet the region's fast-growing energy demands alone. To close the widening gap, data centre operators are exploring alternative energy sources – including hydrogen, ammonia and nuclear power – while also investing in efficiency improvements and carbon offset strategies,' said the report. Currently, data centre operators are purchasing carbon offsets or renewable energy certificates (REC) to meet sustainability goals. However, the report said that operators are under growing pressure to contribute directly to emissions reduction, and not just offset them. 'While they may serve as a quick solution, they cannot be a permanent solution if data centres are to truly decarbonise,' said the report. While having access to renewable energy is increasingly important for data centre operators, South-east Asia still lags in renewable energy adoption. The shift from fossil fuel dependency to renewables in South-east Asia will require substantial investment in infrastructure. However, there is hesitation among governments in the region to increase public debt for infrastructure development, which often limits the speed of transition. 'Private investors must carefully navigate regulatory policies, political dynamics and licensing requirements when investing in or establishing renewable energy facilities. Players must adopt a localised perspective when evaluating the feasibility of renewable energy investments in different territories,' added the report.
CNA
6 hours ago
- CNA
Let Me Tell You A Story - Tales From The South
46:13 Min Singapore's story began in the south - its first gateway to the world. From Pulau Brani to Pasir Panjang, childhoods were shaped by the sea, port life, and a nation on the verge of transformation. Let Me Tell You A Story About the show: Let Me Tell You A Story 2 uncovers memories of growing up in a very different Singapore, told by seniors aged 60 and above who lived it firsthand. Up north in Sembawang, the Naval Base wasn't just a fortress. It was a one-of-a-kind community, with football fields, rowdy sailors and even wild crocodiles. Down south, from Pulau Brani to Pasir Panjang, children grew up by the docks. The sea was always near - shipyards, industries and a port that would one day power a nation. Across the island, the freewheeling stories reveal a way of life that has vanished. A Singapore before the expressways and MRT, before the island became one of the world's most modern cities.
