Singapore Airlines ( SIA ) reported a record-setting annual net profit on Thursday ( May 15 ), helped in part by a one-time gain recognized as a result of the merger of Air India and Vistara, even as passenger yields were under increased pressure from heightened competition.
In contrast to S$ 2.68 billion a year earlier, the carrier reported net profit for the year ended March 31 at S$ 2.78 billion ( US$ 2.14 billion ).
After completing the acquisition of its 49%-owned American ship Vistara with Air India in November, the ship recognized a one-off obtain of about S$ 1.10 billion.
Nevertheless, its operating profit decreased to S$ 1.71 billion from S$ 2.73 billion as a result of fierce competitors.
It declared a 30-cent last payout, down from the 38 percent the previous year.
SIA now owns a 25.1 percent stake in Air India as a result of the Air India-Vistara acquisition, which, according to SIA, allows it to “participate straight in the rapidly expanding American aviation market.”
According to SIA, the global and domestic airline industry is confronted by a” challenging operating environment amid , changing tax policies and business tensions, economic and geopolitical difficulties, and , continued source chain constraints.”
These variables, it added, may have an impact on both passenger and cargo industry and may have an impact on consumer and business confidence.
The organization pledged to stay vigilant and carefully watch developments to be able to respond to market conditions quickly.
Additionally, it noted that the group’s “well-diversified international passenger and cargo network” may have new opportunities as a result of shifts in global customer and trade flows.
The Group is in a solid position to concentrate on revenue while pursuing progress possibilities and ensuring long-term value creation for shareholders, despite persistent world uncertainties.