The mood at the 2025 annual general meeting was positive, given Singapore Airlines Group’s (SIA) strong performance over the past two financial years, posting a second consecutive year of record revenues and strong industry metrics.
SIA is the national flagship carrier of Singapore, with its headquarters located at Singapore Changi Airport. SIA is renowned for its exceptional service and strong industry leadership in the global aviation space. During the year, SIA received several prestigious accolades including being named one of Fortune’s World’s Most Admired Companies, the only Singapore-listed company to rank in the top 50. This recognition reinforces SIA’s position as a leading global brand. SIA today operates 198 aircraft across Singapore Airlines and Scoot, its wholly owned low-cost carrier, serving 128 destinations worldwide and carrying over 39.3 million passengers in FY2024/25.
To learn more about SIA’s past year’s performance and outlook ahead, I attended its recent annual general meeting.
1. SIA faces industry wide headwinds, but CEO Goh Choon Phong is confident in their abilities to navigate these headwinds as they have done in the past. SIA Group continues to face industry-wide headwinds, including rising fuel costs, supply chain disruptions, and heightened geopolitical tensions. However, CEO has expressed strong confidence in the Group’s ability to navigate these challenges, citing its proven resilience in past crises such as the 2008 global financial crisis and the COVID-19 pandemic. He emphasized that these obstacles are not unique to SIA, but affect the entire aviation industry, positioning SIA on a level playing field. Drawing on its track record of emerging stronger from adversity, the Group remains focused on adaptability, operational excellence, and long-term strategic execution to weather current macroeconomic uncertainties.
2. SIA reported record financial results tapping on pent up demand of travellers and borders fully opening. SIA reported group revenue of S$19.5 billion for FY2024/25, representing a 2.8% increase from the prior year’s S$19.0 billion, marking an all-time high. This was driven primarily by stronger passenger traffic, capacity restoration, and improving yield conditions in premium cabins. However, operating profit declined to S$1.71 billion, compared to S$2.73 billion in FY2023/24, reflecting margin compression due to elevated fuel prices and higher staff-related costs. Net profit came in at S$2.78 billion, up 3.9% from S$2.67 billion the previous year, largely due to non-recurring gains from the accounting adjustment related to SIA’s investment in Vistara being revalued after the merger of Air India and Vistara as well as increased expenditure on strategic investments.
Passenger load factor remained stable at 86.6%, a slight 1.4% decrease from the prior year, while available seat-kilometres increased 8.2 % to 176.8 billion. This demonstrates strong demand for its seats and shows SIA’s continued momentum and resilience in a recovering global aviation market.
3. Singapore Airlines continues to maintain one of the strongest balance sheets in the global aviation industry, with cash reserves of S$8.3 billion as of 31 March 2025. The company also holds S$3.3 billion in committed credit lines that remain completely untapped, alongside S$1.8 billion in fixed deposits with tenors exceeding 12 months. Also, the debt-to-equity ratio stands at a conservative 0.82, demonstrating prudent capital management.
For investors, this robust financial position offers substantial downside protection and positions the company advantageously for potential industry consolidation opportunities that may arise. SIA has proposed a final dividend of 38 cents per share signalling stability and strong confidence in their long-term cash flow generation.
4. The SIA Group seeks to strengthen its position in Southeast Asia by leveraging its strategic geographic location, the region’s aviation growth potential, and its dual-brand strategy. By deepening its presence and proactively responding to evolving travel demand, the Group aims to expand its network and reinforce Changi Airport’s status as a leading global air hub. Its dual-brand approach, combining Singapore Airlines’ premium full-service offerings with Scoot’s value-driven model, allows the Group to cater to a broader spectrum of customer needs and price points.
The CEO stated, “The SIA Group remains committed to capturing growth opportunities and enhancing our competitive advantage by investing in our network, products, and customer experience.”
With Southeast Asia’s aviation market poised for strong recovery and long-term growth, SIA is focused on driving sustainable expansion by leveraging its brand strength, operational excellence, and commitment to innovation. The recent exit of low-cost carrier Jetstar from the Singapore market on Southeast Asia routes further presents a strategic opportunity for SIA to strengthen its regional presence.
5. SIA Group’s strategic partnership network is a key driver of revenue growth and market expansion. With 121 airline partners and 33 codeshare agreements, SIA extends its reach by 254 additional destinations without significant capital outlay. This asset-light model enables access to new markets and revenue streams through alliances with major carriers like Lufthansa, ANA, and Air India, while reinforcing its regional hub through partnerships with Malaysia Airlines, Garuda Indonesia, and Vietnam Airlines.
Recent developments in 2025, including deepened collaboration with Malaysia Airlines and the Lufthansa Group, reflect SIA’s proactive approach to unlocking new growth. For investors, this partnership strategy offers a capital-efficient path to global expansion, boosting revenue through codeshare fees, loyalty programs, and joint marketing without the heavy costs of fleet or route expansion.
6. SIA’s diversified global network remains a key driver of growth for the Group. With over 1,723 weekly flights worldwide, the SIA Group leverages its comprehensive network, particularly in Southeast Asia where Scoot’s expanding presence supports SIA’s efforts to strengthen market leadership. This broad global reach not only fuels the Group’s expansion but also enhances its resilience in an ever-evolving aviation landscape.
SIA leverages both organic expansion and alliance-driven connectivity to capture shifting global passenger flows. Its strong presence in core markets such as Southeast Asia, North Asia, and Europe alongside growing exposure in West Asia and Africa positions the Group to tap into high-demand routes while maintaining flexibility. This network breadth, combined with its asset-light partnership model, enables SIA to optimise route profitability and sustain long-term revenue expansion.
7. SIA Group is investing in its digital transformation to enhance operational efficiency, elevate customer experience, and drive long-term competitiveness. During the meeting, the CEO underscored SIA Group’s strong commitment to enhancing its digital capabilities, highlighting that digital transformation is a critical enabler for both operational excellence and future business growth. As part of this strategic focus, the Group has made sustained investments in technology and innovation. These efforts have led to significant improvements in digital and self-service customer touchpoints, more streamlined and data-driven operational processes, and a more agile and productive workforce. By embedding digital solutions across its core functions, SIA is not only elevating the travel experience but also building a resilient foundation for long-term competitiveness.
The SIA Group’s digital strategy is anchored on four key pillars: fostering a digital culture, enhancing capabilities, strengthening infrastructure, and driving innovation through collaboration. Initiatives such as KrisLab have accelerated innovation, reducing prototype cycle times by 30%, while streamlined development processes have shortened software cycles by 18%.
Efficiency tools like Genie+ have generated annual savings of S$2.4 million in data processing. With a 97% pass rate in cybersecurity tests, SIA maintains strong digital security. Collaborative efforts, including the SIA-A*STAR Joint Lab, further boost productivity and optimisation, reinforcing the Group’s digital foundation for sustained long-term growth.
SIA Group has strategically leveraged generative AI to drive innovation and enhance both customer and staff experiences. To date, the Group has implemented over 80 AI use cases, including the Flight Recommender, a GenAI-powered search tool integrated into the SIA website and mobile app. This solution streamlines the booking process, saving customers a total of 2,500 hours daily. Internally, SIA introduced Jarvis, an intelligent assistant that serves as a central knowledge repository for staff. With over 90% adoption among 5,600 ground staff, Jarvis significantly boosts operational efficiency and decision-making. In parallel, SIA has also invested in building a future-ready workforce by rolling out GenAI education and upskilling initiatives, empowering employees to harness emerging technologies effectively and contribute to continuous innovation.
8. SIA Group is embracing its sustainability goals by targeting to achieve net zero by 2050. As part of its strategic commitment to sustainability, SIA Group operates a modern and fuel-efficient fleet with an average age of seven years and eight months, which is significantly younger than the global average of 15 years. These newer aircraft incorporate the latest technologies, offering improved fuel efficiency and reduced emissions.
To further its decarbonisation efforts, SIA has secured agreements to offtake 300 tonnes of neat sustainable aviation fuel (SAF) from Neste’s Singapore facility and U.S.-based World Energy. Additionally, the Group has signed an memorandum of understanding with Aether Fuels to support the development of advanced SAF. These initiatives contribute to SIA’s goal of achieving net zero carbon emissions by 2050.
The fifth perspective
The SIA Group continues to distinguish itself as a global aviation leader, underpinned by resilience, strategic clarity, and disciplined financial management. Despite ongoing headwinds such as rising fuel costs and margin pressures, SIA’s strong balance sheet and record revenues highlight its post-pandemic recovery strength. Its dual-brand strategy and growing presence in Southeast Asia position the Group to capitalise on long-term regional opportunities.
SIA’s asset-light partnerships and broad global network enable scalable growth with minimal capital expenditure, while its strong commitment to digital transformation and AI innovation ensures future-ready operations and a superior customer experience.
However, recent Q1 FY2025/26 results revealed short-term turbulence, with net profit falling 59% to S$186 million and operating profit down 14% year-on-year, driven by lower interest income and share of losses from its stake in Air India. Still, with strong fundamentals and exposure to high-growth markets like India, SIA remains well-positioned for sustained long-term growth.
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