Demand for air travel boosts SIA’s total revenue for Q3 to record $5.2b
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SIA and Scoot carried a quarterly record of 10.2 million passengers in the three months ended Dec 31, 2024, an increase of 7.2 per cent from the third quarter a year ago.
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SINGAPORE – Despite reporting record quarterly revenue from robust demand for air travel, passenger traffic on Singapore Airlines (SIA) lagged behind available capacity and competition remained intense.
The demand for air travel helped boost the group’s total revenue for the three months ended Dec 31, 2024, to a record $5.2 billion, up 2.7 per cent year on year.
SIA, together with its budget carrier Scoot, carried a quarterly record of 10.2 million passengers for the period, an increase of 7.2 per cent from the third quarter a year ago, the airline said in a Feb 20 business update issued after the market closed.
But greater competition put pressure on the group’s yields – the amount earned per passenger for each kilometre flown, which dipped by 4.5 per cent to 10.7 cents, SIA said.
The growth in its passenger traffic, at 7.2 per cent, also lagged behind growth in capacity of 8.5 per cent. Hence, although a record number of passengers were flown in the quarter, this increase did not keep pace with the expansion in the group’s capacity.
As at Dec 31, 2024, both SIA and Scoot operated a fleet of around 200 passenger aircraft, including one Airbus A350-900 added to SIA’s fleet and three Embraer E190-E2 aircraft added to Scoot’s.
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The group recorded an operating profit of $629 million for the third quarter, up 3.3 per cent from the same quarter in the previous year.
Net profit rose by 146.7 per cent to $1.6 billion, predominantly due to $1 billion in a non-cash accounting gain resulting from the disposal of Indian airline Vistara in November 2024.
SIA expects competition to continue intensifying even as demand for air travel rises.
“While e-commerce and perishables traffic are expected to hold up cargo demand, yield moderation is likely to persist as airlines across the industry resume passenger flights and increase their belly-hold cargo capacity,” it said.
SIA’s cargo-flown revenue increased by 9.7 per cent to reach $54 million in the third quarter, bolstered by strong e-commerce activity, higher freighter charters and a boost in perishables traffic.
SIA operates a fleet of seven freighters, with its cargo network reaching 133 destinations in 37 countries and territories as at Dec 31, 2024.
Its shares closed down one cent at $6.42 on Feb 20.
Sue-Ann Tan is a business correspondent at The Straits Times covering capital markets and sustainable finance.
