Latest news with #AirIndia-Vistara
New Paper
16-05-2025
- Business
- New Paper
SIA staff to get 7.45 months' bonus after airline posts record $2.8 billion profit
Singapore Airlines (SIA) has posted a record $2.8 billion net profit for the year ended March 31 and is said to be rewarding staff with a profit-sharing bonus of 7.45 months. Its record profit was boosted by a one-off non-cash accounting gain of $1.1 billion from the Air India-Vistara merger, it said in a filing on the Singapore Exchange on May 15. Group revenue also climbed 2.8 per cent from the year before to hit a record $19.54 billion, driven by resilient demand for air travel and cargo uplift, it added. In response to queries from The Straits Times on staff bonus, SIA said it can confirm that employees will receive a profit-sharing bonus in recognition of their dedication and hard work in FY2024-25. "This is based on a longstanding formula that has been agreed with our staff unions," SIA said, without disclosing details of the formula and bonus. The 7.45 months' bonus is slightly lower than the 7.94 months for the year before. The Air India-Vistara merger was completed in November 2024. Before the merger, Vistara was jointly owned by Tata Sons and SIA. After the merger, SIA holds a 25.1 per cent stake in the enlarged Air India, allowing it to participate directly in the fast-expanding Indian aviation market. SIA and its budget airline Scoot also carried a record 39.4 million passengers, up 8.1 per cent, it said. Despite carrying more passengers, passenger yields - the amount earned per passenger for each kilometre flown - dipped 5.5 per cent to 10.3 cents per revenue passenger-kilometre. This was amid intensified competition due to industry-wide capacity injection, SIA said. Passenger traffic growth, which stood at 6.4 per cent, also lagged behind its capacity expansion of 8.2 per cent. Meanwhile, its cargo flown revenue improved by $94 million, or 4.4 per cent, buoyed by the strong demand for e-commerce and perishables, as well as the spillover from disruptions to sea freight. SIA's board of directors recommended a final dividend of 30 cents per share for the full year. Including the interim dividend of 10 cents per share paid on Dec 11, 2024, the total dividend for the year will be 40 cents per share, representing a total dividend distribution of $1.2 billion for the year. The final dividend, which is subject to shareholders' approval, will be paid on Aug 27. Looking ahead, SIA said the global airline industry faces a challenging operating environment amid changing tariff policies and trade tensions, economic and geopolitical uncertainties, and continued supply chain constraints. "These factors may impact consumer and business confidence, potentially affecting both passenger and cargo markets," it added. "The group remains vigilant, closely monitoring developments and prepared to respond swiftly to market conditions." On a positive note, SIA said shifts in global passenger and trade flows may open new opportunities for the group, with its well-diversified global passenger and cargo network. It added that its hub in Singapore offers a strategic advantage, given its position at the centre of growing economies in South-east Asia, South Asia and the wider Asia-Pacific region, and the group's strong presence in these markets. "The group's dual-brand strategy, which leverages both SIA and Scoot, provides it with the flexibility to offer customers a wide range of options while responding nimbly to market dynamics," it said. It is also prepared to partner other airlines to open up growth opportunities, particularly in the Asia-Pacific region. "Continued focus on product leadership and service excellence, including investments in next-generation aircraft, new cabin products and airline lounges, will help the group's airlines maintain their competitive edge by providing customers with more value and enhancing the end-to-end travel experience," SIA said. The group's operating fleet stands at a total of 205 aircraft as at March 31. SIA operates 145 passenger aircraft and seven freighters, while Scoot has 53 passenger aircraft. As at May 1, the group has 78 aircraft on order. Its passenger network also covered 128 destinations in 36 countries and territories as at March 31. SIA will increase services to Brisbane, Colombo, Jakarta, Johannesburg, London (Gatwick), Manila and Seattle for the operating season from March to October. Meanwhile, Scoot launched services to Iloilo City in April and will begin operations to Vienna in June. SIA will also start revenue-sharing flights with All Nippon Airways (ANA) between Japan and Singapore from September, with the joint fare products for these services going on sale in May. To bolster its premium positioning, SIA has announced a $1.1 billion investment to install all-new cabin products across its Airbus A350-900 long-haul and ultra-long-range fleet, including the debut of its new First Class cabin in seven A350-900 ultra-long-range aircraft. It also announced a $45 million transformation of its SilverKris and KrisFlyer Gold lounges at Singapore Changi Airport Terminal 2, to provide more space, upgraded facilities and more food and beverage options. The group also continues to invest in its digital capabilities, including generative artificial intelligence, giving it an edge in the competitive aviation landscape, SIA said. SIA shares closed 0.3 per cent, or two cents, higher at $6.88 on May 15, before its financial results were announced.
Straits Times
15-05-2025
- Business
- Straits Times
SIA posts record $2.8 billion full-year profit; staff to get 7.45 months' bonus
SIA's record profit was boosted by a one-off non-cash accounting gain of $1.1 billion from the Air India-Vistara merger. ST PHOTO: LIM YAOHUI SINGAPORE – Singapore Airlines (SIA) posted a record $2.8 billion net profit for the year that ended March 31 and is said to be rewarding staff with a profit-sharing bonus of 7.45 months. Its record profit was boosted by a one-off non-cash accounting gain of $1.1 billion from the Air India-Vistara merger, it said in a filing on the Singapore Exchange on May 15. Group revenue also climbed 2.8 per cent from the year before to hit a record $19.54 billion, driven by resilient demand for air travel and cargo uplift, it added. In response to queries from The Straits Times on staff bonus, SIA said it can confirm that employees will receive a profit-sharing bonus in recognition of their dedication and hard work in FY2024/25. 'This is based on a long-standing formula that has been agreed with our staff unions,' SIA said, without disclosing details of the formula and bonus. The 7.45 months bonus is slightly lower than the 7.94 months for the year before. The Air India-Vistara merger was completed in November 2024. Before the merger, Vistara was jointly owned by Tata Sons and SIA. After the merger, SIA holds a 25.1 per cent stake in the enlarged Air India, allowing it to participate directly in the fast-expanding Indian aviation market. SIA and its budget airline Scoot also carried a record 39.4 million passengers, up 8.1 per cent, it said. Despite carrying more passengers, passenger yields – the amount earned per passenger for each kilometre flown – dipped 5.5 per cent to 10.3 cents per revenue passenger-kilometre. This was amid intensified competition due to industry-wide capacity injection, SIA said. Passenger traffic growth, which stood at 6.4 per cent, also lagged behind its capacity expansion of 8.2 per cent. Meanwhile, its cargo flown revenue improved by $94 million, or 4.4 per cent, buoyed by the strong demand for e-commerce and perishables, as well as the spillover from disruptions to sea freight. SIA's board of directors recommended a final dividend of 30 cents per share for the full year. Including the interim dividend of 10 cents per share paid on Dec 11, 2024, the total dividend for the year will be 40 cents per share, representing a total dividend distribution of $1.2 billion for the year. The final dividend, which is subject to shareholders' approval, will be paid on Aug 27. Looking ahead, the global airline industry faces a challenging operating environment amid changing tariff policies and trade tensions, economic and geopolitical uncertainties, and continued supply chain constraints, SIA said. 'These factors may impact consumer and business confidence, potentially affecting both passenger and cargo markets,' it added. 'The group remains vigilant, closely monitoring developments and prepared to respond swiftly to market conditions.' On a positive note , SIA said shifts in global passenger and trade flows may also open new opportunities for the group, with its well-diversified global passenger and cargo network. It added that its hub in Singapore offers a strategic advantage, given its position at the centre of growing economies in South-east Asia, South Asia, and the wider Asia-Pacific region, and the group's strong presence in these markets. 'The group's dual-brand strategy, which leverages both SIA and Scoot, provides it with the flexibility to offer customers a wide range of options while responding nimbly to market dynamics,' it said. It is also prepared to partner other airlines to open up growth opportunities, particularly in the Asia-Pacific region. 'Continued focus on product leadership and service excellence, including investments in next-generation aircraft, new cabin products, and airline lounges, will help the group's airlines maintain their competitive edge by providing customers with more value and enhancing the end-to-end travel experience,' SIA said. The group's operating fleet s tands at a total of 205 aircraft as of March 31. SIA operates 145 passenger aircraft and seven freighters, while Scoot has 53 passenger aircraft. As of May 1, the group has 78 aircraft on order. Its passenger network also covered 128 destinations in 36 countries and territories as of March 31. SIA will also increase services to Brisbane, Colombo, Jakarta, Johannesburg, London (Gatwick), Manila, and Seattle for the operating season from March to October. Meanwhile, Scoot launched services to Iloilo City in April and will begin operations to Vienna in June. SIA will also start revenue-sharing flights with All Nippon Airways (ANA) between Japan and Singapore from September, with the joint fare products for these services going on sale in May. To bolster its premium positioning, SIA had announced a $1.1 billion investment to install all-new long-haul cabin products across its Airbus A350-900 long-haul and ultra-long-range fleet, including the introduction of its new First Class cabin in seven A350-900 ultra long range aircraft. It also announced a $45 million transformation of its SilverKris and KrisFlyer Gold lounges at Singapore Changi Airport Terminal 2, to provide more space, upgraded facilities and more food and beverage options. The group also continues to invest in its digital capabilities, including Generative Artificial Intelligence (GenAI), giving it an edge in the competitive aviation landscape, SIA said. SIA shares closed 0.3 per cent, or two cents, higher at $6.88 on May 15, before its financial results were announced. Sue-Ann Tan is a business correspondent at The Straits Times covering capital markets and sustainable finance. Join ST's Telegram channel and get the latest breaking news delivered to you.
Wall Street Journal
15-05-2025
- Business
- Wall Street Journal
Singapore Airlines Posts Another Record Annual Profit, But Flags Trade Risks
Singapore Airlines' C6L 0.29%increase; green up pointing triangle annual profit climbed to a new high, though it flagged that tariffs and trade uncertainty cloud the outlook for the airline industry. The city-state's flag carrier said Thursday that net profit rose 3.9% to a record 2.78 billion Singapore dollars, equivalent to US$2.14 billion, for the year ended March. Profit was boosted by a one-off noncash accounting gain of S$1.1 billion from the Air India-Vistara merger, which was completed in November. Revenue rose 2.8% to S$19.54 billion. Operating profit fell 37% to S$1.71 billion on softer yields, pressured by intensifying competition from rival carriers adding capacity, but Singapore Airlines said this was partly mitigated by the record number of passengers it carrier during the period. Singapore Airlines and its low-cost carrier Scoot carried a record 39.4 million passengers in total, up 8.1% from the prior year. Looking ahead, Singapore Airlines said the 'industry faces a challenging operating environment amid changing tariff policies and trade tensions, economic and geopolitical uncertainties, and continued supply chain constraints.' These factors could affect consumer and business confidence, which in turn could weigh on passenger and cargo markets, it said. 'While global uncertainties remain, the group is in a strong position to focus on profitability, while pursuing growth opportunities and ensuring long-term value creation for shareholders,' the airline said. Write to Kimberley Kao at
Yahoo
20-02-2025
- Business
- Yahoo
Singapore Air says demand to counter growing competition
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) More stories like this are available on ©2025 Bloomberg L.P.
Reuters
20-02-2025
- Business
- Reuters
Singapore Airlines' third-quarter profit more than doubles
Feb 20 (Reuters) - Singapore Airlines ( opens new tab reported a near 150% jump in third-quarter net profit on Thursday, helped by a one-time gain from the Air India-Vistara merger. The city-state's flag carrier posted a net profit of S$1.63 billion ($1.22 billion) for the three months ended December 31, compared with S$659 million a year ago. ($1 = 1.3386 Singapore dollars) Make sense of the latest ESG trends affecting companies and governments with the Reuters Sustainable Switch newsletter. Sign up here.
