Singapore Airlines (SIA) Group soared to new heights as it reported a staggering $1 billion non-cash gains from the merger between Vistara and Air India. This monumental achievement catapulted the airline group’s net profit by over 146% during the third quarter of FY25, a remarkable feat that left industry experts and aviation enthusiasts alike in awe.
The synergy between SIA and Tata Sons culminated in the successful merger of Air India and Vistara, bestowing upon the former a 25.1% stake in the expanded Air India Group. This strategic move paved the way for a significant financial windfall, with Singapore Airlines Group’s net profit surging to an impressive $1,626 million, marking a substantial increase of $967 million.
Amidst the backdrop of this financial triumph, the airline group revealed a non-cash accounting gain of $1,098 million resulting from the transformative merger in November 2024. This gain, despite a lower operating profit, propelled the Group’s net profit to reach $268 million, a notable 12.8% increase that underscored the profound impact of the Vistara-Air India merger.
In a regulatory filing, the airline group expressed unwavering commitment to the growth and prosperity of the Air India Group, emphasizing its robust presence across all vital segments of the Indian market. The partnership between SIA and Tata Sons promises a bright future for the Air India Group, with both entities poised to unlock new opportunities and achieve greater heights of success.
Furthermore, the collaborative efforts of Air India and SIA bore fruit with the addition of 51 new codeshare destinations from October 2024. This development not only expanded the travel options for customers between Singapore and India but also opened up new horizons for seamless travel experiences beyond these two destinations. The strategic alliance between the two airlines is poised to deepen across various commercial activities, promising a plethora of benefits for discerning travelers.
Looking back at 2024, Singapore Airlines Group had initially projected a non-cash accounting gain of approximately SGD 1.1 billion ($832.45 million) upon the completion of the Air India-Vistara merger. This ambitious target was not only met but significantly surpassed, signaling a resounding success for the airline group and its partners.
Moreover, the group highlighted a record revenue of $5,219 million in the three months ending on December 31, 2024, a remarkable $137 million increase from the previous year. This surge in revenue was fueled by robust demand for air travel in the third quarter of FY2024-25, underscoring the enduring popularity and resilience of the aviation industry.
In conclusion, the remarkable success story of Singapore Airlines Group stands as a testament to the power of collaboration, innovation, and strategic vision in the aviation sector. The Vistara-Air India merger not only yielded substantial financial gains but also paved the way for enhanced customer experiences, expanded travel options, and a promising future for the Air India Group. As the airline group continues its trajectory of growth and success, the sky truly seems to be the limit for this aviation powerhouse.