SINGAPORE: Singapore Airlines (SIA) reported a record annual net profit on Thursday (May 15), largely buoyed by a one-off gain recognised from the merger of Air India and Vistara, even as heightened competition pressured passenger yields.
The carrier said net profit came in at S$2.78 billion (US$2.14 billion) for the year ended Mar 31, compared with S$2.68 billion a year earlier.
The carrier recognised a one-off gain of about S$1.10 billion after completing the merger of its 49 per cent-owned Indian carrier Vistara with Air India last November.
Its operating profit, however, fell to S$1.71 billion, down from S$2.73 billion a year earlier, as passenger yields - a proxy for airfares - dropped due to stiff competition.
It declared a final dividend of 30 cents per share, lower than 38 cents declared a year earlier.
The Air India-Vistara merger, completed on Nov 12 last year, gives SIA a 25.1 per cent stake in Air India, allowing it to "participate directly in the fast-expanding Indian aviation market", said SIA.
On the industry's outlook, SIA said that the global airline industry faces a "challenging operating environment amid changing tariff policies and trade tensions, economic and geopolitical uncertainties, and continued supply chain constraints".
It added that these factors may affect consumer and business confidence, and as a result, affect both passenger and cargo markets.
The group said it will remain vigilant and closely monitor developments so it is able to react swiftly to market conditions.
It also noted that shifts in global passenger and trade flows may create new opportunities for the group due to its "well-diversified global passenger and cargo network".
"While global uncertainties remain, the Group is in a strong position to focus on profitability, while pursuing growth opportunities and ensuring long-term value creation for shareholders."
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The carrier said net profit came in at S$2.78 billion (US$2.14 billion) for the year ended Mar 31, compared with S$2.68 billion a year earlier.
The carrier recognised a one-off gain of about S$1.10 billion after completing the merger of its 49 per cent-owned Indian carrier Vistara with Air India last November.
Its operating profit, however, fell to S$1.71 billion, down from S$2.73 billion a year earlier, as passenger yields - a proxy for airfares - dropped due to stiff competition.
It declared a final dividend of 30 cents per share, lower than 38 cents declared a year earlier.
The Air India-Vistara merger, completed on Nov 12 last year, gives SIA a 25.1 per cent stake in Air India, allowing it to "participate directly in the fast-expanding Indian aviation market", said SIA.
On the industry's outlook, SIA said that the global airline industry faces a "challenging operating environment amid changing tariff policies and trade tensions, economic and geopolitical uncertainties, and continued supply chain constraints".
It added that these factors may affect consumer and business confidence, and as a result, affect both passenger and cargo markets.
The group said it will remain vigilant and closely monitor developments so it is able to react swiftly to market conditions.
It also noted that shifts in global passenger and trade flows may create new opportunities for the group due to its "well-diversified global passenger and cargo network".
"While global uncertainties remain, the Group is in a strong position to focus on profitability, while pursuing growth opportunities and ensuring long-term value creation for shareholders."
Continue reading...