- Singapore Airlines reported net income of S$186.1 million for the first quarter of 2025, a decrease of 59% compared to S$451.7 million the previous year.
- The operating profit stood at S$404.5 million, marking a 14% decline year-over-year.
- Fuel costs amounted to S$1.26 billion, showing a 7.9% reduction from the prior year.
- There was a fuel hedging loss of S$60 million.
- Basic earnings per share (EPS) fell to S$0.063 compared to S$0.128 the year before.
- Passenger load factor improved slightly, with the group airlines at 87.6%, up from 86.9% last year.
- Scoot, a subsidiary of Singapore Airlines, achieved a passenger load factor of 91.5%, an increase from 89% year-over-year.
- Singapore Airlines observed a 3.5% decrease in passenger yield per kilometer to S$0.110.
- Available seat kilometers increased by 4.2% to 35.03 billion.
- Revenue Passenger Kilometers (RPK) rose by 4.1%, reaching 38.76 billion.
- Total revenue for the quarter grew slightly by 1.5% to S$4.79 billion.
- Singapore Airlines noted that demand for air travel remains healthy in the second quarter.
- Uncertain demand in the cargo sector is attributed to ongoing tariffs, and the group plans to continue adapting its capacity.
- The decline in net profit is mainly due to reduced interest income resulting from lower cash balances and interest rate cuts.
- The company faced losses from associated companies, notably Air India, whose financial results were included this year.
- Analyst recommendations include 3 buys, 7 holds, and 4 sells.
Singapore Airlines on Smartkarma
Analyst coverage on Singapore Airlines by Henry Soediarko on Smartkarma highlights concerns over the impact of higher crude oil prices on the company’s earnings. In the report titled “Singapore Airlines (SIA): Losing from Higher Crude Oil Price,” Soediarko points out that the airline faces potential earnings pressure due to the Middle East crisis and the rising cost of crude oil. With significant exposure to oil prices, Singapore Airlines may see a decline in earnings as high as 30% of total costs. Despite this bearish outlook, the company’s elevated dividend yield could offer some support in the short term.
A look at Singapore Airlines Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 5 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Singapore Airlines Limited, a prominent player in the aviation industry, is positioned well for long-term success according to Smartkarma Smart Scores. With a strong focus on providing value-driven services and a commendable dividend payout, the company’s financial health is reflected in its high scores of 3 for Value and a perfect 5 for Dividend. Additionally, with solid scores of 4 for Growth, Resilience, and Momentum, Singapore Airlines showcases a robust performance across various key factors, indicating a promising outlook for the future.
As a leader in air transportation services covering multiple regions globally, Singapore Airlines leverages its expertise in engineering, pilot training, air charter, and tour wholesaling. With a strategic approach to growth, resilience in challenging market conditions, and positive momentum driving its operations, Singapore Airlines is well-positioned to navigate the dynamic landscape of the aviation industry effectively. Investors looking for a company with a strong overall outlook based on Smartkarma Smart Scores can find confidence in the long-term prospects of Singapore Airlines as it continues to expand and innovate in the competitive aviation sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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