Merger with Air India boosts bottom line; carrier eyes Indian aviation growth through 25.1% stake
New Delhi, May 15 — Singapore Airlines Group (SIA) has reported a record net profit of SGD 2.8 billion for the financial year ending March 2025, marking a nearly 4 percent increase from the previous year. The standout performance was significantly buoyed by a one-time non-cash accounting gain of SGD 1.1 billion from the merger of Vistara with Air India in November 2024.The group’s net profit rose by SGD $103 million, or 3.9 percent, from SGD $2.675 billion in FY24 to SGD $2.778 billion in FY25. Revenue increased to SGD 19.540 billion from SGD 19.013 billion in the previous year.
In a statement on Thursday, the airline emphasized the strategic importance of the merger, stating, “SIA and Tata Sons successfully completed the Air India-Vistara merger on 12 November 2024, reinforcing the Group’s multi-hub strategy.” With this transaction, Singapore Airlines now owns a 25.1 percent stake in the enlarged Air India.
Stake in Air India Expands Market Reach
This ownership allows Singapore Airlines direct access to one of the world’s fastest-growing aviation markets. The company reaffirmed its commitment to Air India’s expansion, stating that both SIA and Tata are “firmly committed to supporting the growth and success of Air India.”Vistara, previously a joint venture between Singapore Airlines and Air India, was known for its premium full-service model and will now be integrated under the Air India brand.
Financial Outlook and Strategic Focus
Despite the record profit, SIA’s cash and bank balances dipped to SGD 8.3 billion, primarily due to capital expenditures (SGD 1.8 billion), MCB redemption (SGD 1.7 billion), dividend payouts (SGD 1.4 billion), and the SGD 1.0 billion investment in Air India. These outflows were partially balanced by SGD 4.7 billion in net operational cash flow.The airline cautioned about global headwinds, including shifting trade policies, geopolitical uncertainty, and ongoing supply chain issues that may weigh on consumer and business sentiment.
Nonetheless, the group remains optimistic, citing the strength of its dual-brand model — combining Singapore Airlines and low-cost carrier Scoot — to adapt to dynamic market needs. “The Group’s dual-brand strategy offers customers a wide range of options and enables agile responses to market shifts,” the airline noted.
Continued Growth Through Partnerships
Highlighting its Asia-Pacific focus, SIA also stressed the value of strategic alliances. "Win-win partnerships with like-minded carriers allow it to work together with these airlines to open up growth opportunities," the statement said.As it charts its future course, Singapore Airlines appears poised to deepen its footprint in India while leveraging its diversified portfolio and strategic collaborations to navigate global challenges.
