SIA operating profit falters over lower yield in competitive environment and rising fuel costs

Singapore Airlines (SIA) reporting a 37.7% drop in its first quarter fiscal year 2024/25 results, down to $470 million. Its net profit was down 38.4% to $452 million. The airline cited lower yields and rising fuel costs as a main driver to its lower operating profit. Its revenues were up only 5.3% to $4.7bn, while its total expenditure was up 14% to $4.2bn in the quarter. Net fuel costs were up 30% to $1.4bn. SIA said the aviation industry – including itself – is contending with continuously heightening competition, supply chain constraints, costs pressures from inflation, and geopolitical tensions. The