Singapore Airlines (SIA) Group on Thursday, reported a rise of over 146 per cent in its net profit during the third quarter of FY25, predominantly due to non-cash accounting gains resulting from Vistara’s merger with Air India.
Accordingly, Singapore Airlines Group’s net profit rose $967 million to $1,626 million, on the back of a $1,098 million non-cash accounting gain resulting from the merger that took place in November 2024.
“Despite the lower operating profit, the Group net profit was $268 million (12.8 per cent) higher on the back of the non-cash accounting gain following the merger of Vistara with Air India in November 2024,” the airline group said in a regulatory filing.
Last year, SIA and Tata Sons completed the merger of Air India and Vistara, giving the former a 25.1 per cent stake in the enlarged Air India Group.
“The partners are firmly committed to supporting the growth and success of the Air India Group, which has a strong presence across all key segments of the Indian market,” the filing said.
Besides, the airline group cited that Air India and SIA added 51 new codeshare destinations from October 2024, “offering customers enhanced travel options between Singapore and India, as well as beyond.”
“Both airlines are exploring opportunities to deepen their strategic relationship across a wide range of commercial activities.”
In 2024, Singapore Airlines Group had said that it expects a non-cash accounting gain of approximately SGD 1.1 billion ($832.45 million) once the Air India-Vistara merger is completed.
In addition, the group pointed out that revenue reached a record $5,219 million in the three months ended 31 December 2024, up $137 million (2.7 per cent) from the same period last year, “spurred by robust demand for air travel in the third quarter of FY2024-25.”
