- SIA (SGX:C6L) reported headline net profit of S$1.63bn (+146.7% y-o-y, +460.1% q-o-q) in 3QFY25. However, the group recognised a non-cash accounting gain of S$1.1bn from the Air India-Vistara merger in Nov 24. Without this, core net profit would have been S$528.1mil (-19.8% y-o-y, +81.9% q-o-q), with 9MFY25 core net profit accounting for about 84% of DBS/consensus full-year estimates, surpassing expectations due to a lower-than-expected decline in yields at SIA and a drop in jet fuel prices.
3QFY25 results outperformed expectations.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
- Total expenditure rose 2.6% y-o-y to S$4.6bn, largely due to an 8.6% increase in ex-fuel costs, partially offset by lower net fuel costs (-9.8% y-o-y). The decline in net fuel costs was driven by a 20.9% drop in jet fuel prices, though partially countered by higher uplift volumes and a hedging loss (vs. gain in 3QFY24).
- Consequently, operating profit improved 3.3% y-o-y to S$629mil, and operating margin remained relatively stable at 12.1% from the same period a year ago.
Passenger yields are holding up better than anticipated.
- Read more at SGinvestors.io.
