- Singapore Airlines reported a significant drop in net income for the second quarter of 2025, down 82% year-over-year to S$52.4 million.
- Despite the decline in net income, operating profit increased by 23% year-over-year, reaching S$398.4 million.
- The airline’s fuel costs decreased by 5.5% from the previous year to S$1.29 billion, but there was a S$15 million loss from fuel hedging.
- Basic earnings per share for Singapore Airlines stood at S$0.017.
- Passenger load factors improved across the board, with the group’s airlines reporting an increase to 87.9%, Singapore Air at 86.9%, and Scoot at 91.4%.
- Total revenue rose by 2.2% year-over-year to S$4.88 billion.
- For the first half of the fiscal year, Singapore Airlines declared an interim dividend of S$0.05 per share.
- Comments from the company highlighted losses from Air India and lower interest income as factors negatively impacting net profit.
- The air cargo segment remains uncertain amidst ongoing industry challenges, including geopolitical issues.
- Singapore Airlines proposed a capital return plan and intends to pay a special dividend of S$0.10 per share annually for the next three years.
- Investor sentiment shows 0 buys, 6 holds, and 9 sells for Singapore Airlines stock.
Singapore Airlines on Smartkarma
Analysts on Smartkarma are closely monitoring Singapore Airlines, with Henry Soediarko providing insightful coverage on the company. In his report titled “Singapore Airlines (SIA): Losing from Higher Crude Oil Price,” Soediarko highlights the potential earnings impact faced by Singapore Airlines due to the Middle East crisis and the escalating crude oil prices. The airline, known for its rather high dividend yield, may experience strained earnings in the near term as up to 30% of its total costs are attributed to crude oil.
A look at Singapore Airlines Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 5 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.8 |
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
Based on Smartkarma Smart Scores, Singapore Airlines shows a promising long-term outlook. The company scores well in several key areas, with high marks in Dividend, Growth, Resilience, and a moderate score in Value and Momentum. This indicates that Singapore Airlines is a stable company that provides good dividends to its investors, has potential for growth, and demonstrates resilience in the face of challenges. With a strong presence in air transportation, engineering, and other services across multiple regions, Singapore Airlines is positioned well for continued success in the aviation industry.
Singapore Airlines Limited, known for its air transportation, engineering, pilot training, air charter, and tour wholesaling services, boasts solid Smartkarma Smart Scores across the board. The company excels in offering dividends, showcasing growth potential, and demonstrating resilience, portraying a positive long-term outlook. Serving various regions including Asia, Europe, the Americas, South West Pacific, and Africa, Singapore Airlines stands as a reputable player in the industry, primed for sustained success in the future.
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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