Singapore Airlines (C6L) Q1 2025 earnings summary

Executive summary

• Net profit for Q1 FY24/25 was $451.7M–$452M, down 38.4%–38.5% year-over-year, mainly due to lower yields and higher fuel costs.

• Passenger flown revenue increased by $151.6M or 4.1%, supported by capacity growth and strong load factors, though yields fell 4.6%.

• Cargo revenue remained flat as higher loads offset a 19.1% drop in cargo yields.

• The group faces heightened competition, supply chain constraints, inflationary pressures, and geopolitical uncertainties.

• Strategic initiatives include investments in India, airline partnerships, and cost discipline.

Financial highlights

• Total revenue rose 5.3% year-over-year to $4,718M–$4,718.4M; total expenditure increased 14.0% to $4,248M–$4,248.2M.

• Operating profit was $470M–$470.2M, down 37.7% year-over-year; net profit was $451.7M–$452M, down 38.4%–38.5%.

• EBITDA for Q1 FY24/25 was $1,218.9M with an EBITDA margin of 25.8%.

• Earnings per share (basic) was 12.8 cents, down from 14.3–15.2 cents a year ago.

• Cash and bank balances dropped by $1.2B to $10.1B, mainly due to bond redemption.

Outlook and guidance

• The group remains well-positioned to navigate industry challenges and pursue growth, leveraging robust foundations and cost discipline.

• Travel demand is expected to remain healthy, but passenger yields will likely stay below last year's levels as capacity increases.

• Air cargo demand remains robust, with yields still 18.4% above pre-pandemic levels despite moderation.

• The Group will stay agile to seize growth opportunities amid industry headwinds.