Singapore Airlines' (SIA) net profit fell 59% in the second quarter of the financial year 2024/25, down to S$290 million ($217.3 million). Operating profit fell 59.3% to S$325 million ($243.5 million) in the period.
Revenues rose only 2% to S$4.8bn ($3.6bn), while total expenditure climbed 14.7% to S$4.5bn ($3.4bn). Net fuel costs climbed 10.6% to S$1.4bn ($1bn), while non-fuel expenditure rose 16.6% to S$3.1bn ($2.3bn).
SIA said increased capacity and stronger competition in key markets had driven yield moderation and the decline in operating profits. In addition, net profits were impacted by weaker operating performance, lower net interest income, and loss on disposal of aircraft, spares, and spare engines versus a gain last year. The group, consisting of SIA and low-cost carrier Scoot, said passenger load factor in the quarter decreased 2.8 percentage points to 85.8%, with passenger capacity growth at 9.7% outweighed traffic growth at 6.3%. Passenger flown revenue was somewhat flat, dipping only 0.9% to S$3.8bn ($2.8bn).
As of September 30, 2024 the group shareholders' equity was S$13.7bn ($10.3bn). Total debt was S$13.2bn ($9.9bn). The company's debt-equity ratio to 0.96x. Cash and bank balances were S$9bn ($6.7bn). The airline added four 787-10 aircraft in the quarter. The group's operating fleet consisted of 205 aircraft with an average age of seven years and five months. SIA's fleet consisted of 146 passenger aircraft and seven freighters, while Scoot's consisted of 52 passenger aircraft. The group has 84 aircraft on order.
The company declared an interim dividend of S$0.10 per share, which is to be paid on December 11, 2024.