The Singapore Airlines Group has made a record profit of SGD 2.8 billion for the just-ended financial year, which is its best overall result. A one-time, non-cash revenue gain of SGD 1.1 billion from the merger of Vistara with Air India in November 2024 played a big role in their record results. By merging with Vistara Airlines, Singapore Airlines got a 25.1% ownership of Air India and a foothold in the fast-developing aviation market of India. Even as the world is going through economic and political challenges, the airline group continues to be unaffected and positive about its future progress.
Merger Boosts Profit and Strategic Positioning
On November 12, 2024, the merger of Vistara and Air India was finalized by Singapore Airlines (SIA), which was given a 25.1% ownership share. As a result of the single move, the airline saw a non-cash gain of SGD 1.1 billion and a much higher net profit. Earlier, the establishment of full-service Vistara resulted from a tie-up between SIA and Tata Sons. SIA’s business strategy is to grow at multiple hubs, and this merger helps it to be stronger in India, a developing aviation sector.
The airline showed an improvement, with net profit increasing by 3.9%, bringing it to SGD 2.778 billion as compared to the previous year, SGD 2.675 billion. The company made SGD 19.54 billion in total revenue for the year, higher than the SGD 19.01 billion made in the previous year.
Challenges Ahead, But Confidence Remains Strong
Despite making record profits, SIA’s cash reserves fell to SGD 8.3 billion as a result of huge outlays on capital expenses (SGD 1.8 billion), dividends (SGD 1.4 billion), and the Air India investment (SGD 1.0 billion). In spite of this, the company’s operations still provided a positive cash flow of SGD 4.7 billion.
The airline is still being cautious because of global shortages of supplies, hurdles in trading, and varying consumer moods. Yet, it is certain it can deal with future instability using its journey with both SIA and Scoot and solid alliances in the region. They hope to make use of synergies and improve through teamwork, mainly in the Asia-Pacific area.
