SIA net profit falls 69% in Q3 but it notches record quarterly revenue on robust demand

SINGAPORE – Singapore Airlines (SIA) saw net profit fall 68.9 per cent in the third quarter ended Dec 31, due to the absence of a one-off accounting gain from the disposal of Vistara.

The company announced in a Singapore Exchange filing on Feb 24 that its net profit fell by $1.1 billion to $505 million in the third quarter, after including non-operating items.

This was primarily due to the absence of the one-off, non-cash accounting gain of $1.1 billion recognised in the previous year from the disposal of Vistara following the Air India-Vistara merger in November 2024, SIA said.

But it added that stronger yields and robust demand helped SIA to reach a record quarterly revenue of $5.5 billion, up 5.5 per cent year on year.

Passenger demand remained robust in the third quarter, with SIA and Scoot carrying 10.9 million passengers, 6.3 per cent more year on year.

Passenger yields, which measure the amount earned per passenger for each 1km flown, rose 1.9 per cent to 10.9 cents per revenue passenger-km.

However, cargo revenue fell 5.4 per cent to $581 million, driven by a decline in yields.

SIA recorded an operating profit of $792 million, an increase of 25.9 per cent compared with the same quarter the year before.

But the share of losses from associated companies also increased, by $163 million to $178 million, as the group recognised a full-quarter share of Air India’s losses in this financial year, compared with only one month a year earlier.

However, SIA said it remains committed to supporting Air India’s transformation through working with its partner, Tata Sons, and that it continues to see healthy demand for air travel.

“Air India continues to strengthen its network, enhance the customer experience, and improve operational reliability, laying the foundation for the Air India Group’s long-term sustainable growth,” SIA said.

It added that Air India and SIA have signed a commercial cooperation framework that paves the way for definitive joint business agreements, subject to regulatory approvals.

“The deeper partnership between the carriers will enhance connectivity between Singapore and India through coordinated schedules, enabling more seamless travel for customers,” SIA added.

Both airlines will also explore broader cooperation beyond Singapore and India, and have greater cross-participation in corporate travel programmes and enhanced benefits for KrisFlyer and Maharaja Club members.

SIA added that the demand for air travel is healthy heading into the last quarter of its 2025/2026 financial year, supported by seasonal travel.

“The group is well positioned to capture this demand, and will remain nimble and agile in its network and capacity deployment to maximise revenue opportunities,” SIA said.

However, the cargo outlook continues to be uncertain amid ongoing trade and geopolitical developments, it noted.

“The group is closely monitoring the situation and will leverage its diverse network and cargo verticals as market conditions evolve.”

As at Dec 31, SIA’s operating fleet comprised 212 passenger and freighter aircraft with an average age of seven years and eight months. SIA operated 144 passenger aircraft and seven freighters, while Scoot operated 61 passenger aircraft.

The group has 58 aircraft on order.

As at Dec 31, the group’s passenger network covered 134 destinations in 37 countries and territories.

Between October and December 2025, Scoot expanded its footprint with new services to Danang in Vietnam.

In addition, the airline also introduced non-stop services to Kota Bharu in Malaysia, Nha Trang in Vietnam, Okinawa in Japan, and Labuan Bajo and Semarang in Indonesia.

Between January and March 2026, Scoot will also launch four-times weekly flights to Palembang and daily services to Medan in Indonesia, among others.

From June 2026, SIA will start four-times weekly non-stop flights to Saudi Arabia’s capital, Riyadh, adding a second destination in the kingdom for the group.

Meanwhile, on the cargo front, SIA’s network spanned 138 destinations across 38 countries and territories.

SIA is also unveiling next-generation long-haul cabin products in 2026, alongside an all-new KrisWorld in-flight entertainment system, elevated food and beverage options, new amenity kits and other in-flight offerings.

In addition, SIA plans to progressively introduce high-speed Low Earth Orbit satellite connectivity for enhanced in-flight Wi-Fi across its long-haul fleet.

SIA shares were up 1 per cent to $7.03 on Feb 24, before the results were announced after trading hours.