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SINGAPORE: Eligible Singapore Airlines (SIA) staff will receive a 7.45-month bonus for FY2025 after the group posted a record net profit of S$2.78 billion for the year ended Mar 31, up 3.9% year-on-year (YoY) from S$2.68 billion the year before, The Edge Singapore reported.
SIA told Channel News Asia (CNA), “This is based on a long-standing formula that has been agreed with our staff unions.”
The bonus is slightly lower than the previous financial year’s profit-sharing bonus of 7.94 months, the highest in the airline’s history.
SIA said the strong net profit was helped by a one-off non-cash accounting gain of S$1.1 billion from the Air India-Vistara merger. The deal was completed in November 2024, giving SIA a 25.1% stake in Air India. The airline said this allowed the group to “participate directly in the fast-expanding Indian aviation market”.
While SIA and Scoot carried a record 39.4 million passengers, up 8.1%, and said demand remained strong, increased capacity across the industry drove ticket prices down. Rising fuel costs and overall spending also squeezed profit margins.
The airline noted that US-led tariffs could affect consumer and business confidence, which may affect passenger and cargo markets.
Annual cargo revenue rose by 4.4%, helped by higher demand for e-commerce and perishables, as well as shipping delays in the Red Sea. However, freight yields dropped 7.8% due to stiff competition.
US carriers American Airlines and Delta pulled their forecasts, while Cathay Pacific warned that air cargo demand between mainland China and the US was likely to drop.
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In the group’s press release on Thursday (May 15), SIA announced a final dividend of 30 cents per share, resulting in a total dividend of 40 cents per share for the year.
On the industry’s outlook, the group 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.”
The group said it will remain vigilant, closely monitoring market developments, to swiftly respond to market conditions.
“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,” it added. /TISG
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Read also: Singapore Airlines ranked 3rd most punctual airline in Asia-Pacific in 2024, up from 7th in 2023
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