Singapore Airlines Group (SIA) has reported a steady start to its financial year with a first-quarter operating profit of S$405 million, despite rising non-fuel costs and pressure on both passenger and cargo yields.
While overall group revenue rose 1.5% year-on-year to S$4.79 billion, net profit fell sharply by nearly 59% to S$186 million, largely due to lower interest income and losses recorded from associated companies, including newly consolidated Air India figures.
Cargo Performance Softens
In the cargo sector, the group saw international freight tonne kilometres (FTK) rise by 2.8%, buoyed by a modest rebound in global manufacturing, particularly in consumer and intermediate goods.
However, yields declined 4.4% as capacity growth (+4.2%) outpaced demand, dragging the cargo load factor down by 0.8 percentage points to 56.9%.
The result was a S$10 million drop in cargo flown revenue for the quarter, highlighting challenges posed by softening yields and increased competition. The cargo breakeven load factor rose to 57.4%, indicating thinner margins for air freight operations.
Looking ahead, SIA cautioned that the cargo market remains volatile due to ongoing trade tariffs and geopolitical uncertainties.
However, it stressed that its diversified network and adaptive capacity strategy would help mitigate exposure to specific markets or trade lanes.
SIA’s cargo network now spans 133 destinations across 38 countries, supported by a fleet of seven freighters.
The group’s total fleet stood at 204 aircraft at the end of June, with an average age of just under eight years and 72 new aircraft on order.