Singapore Airlines Sees Record Revenue but Air India Losses Drag Net Profit Down 57%

Singapore Airlines reported a record revenue of SGD 20.5 billion for FY2024, with operating profit up 39% to SGD 2.38 billion, driven by higher demand and yields. However, net profit plunged 57.4% to SGD 1.18 billion due to losses from its 25.1% stake in Air India, exacerbated by the Iran war, Pakistan airspace closure, and a major crash, forcing Air India to cancel nearly a third of its flights during peak travel season. Analysts expect SIA to inject more capital into Air India, potentially constraining dividend capacity, though the long-term strategic bet on India's growing aviation market is expected to eventually pay off.