Singapore Airlines (SIA) Group’s cargo revenue increased in the 2024/25 financial year, but increased competition saw yields drop.
SIA Group’s year-on-year cargo revenue increased 4.4% for the financial year 2024/25, boosted by e-commerce and perishables demand, as well as additional airfreight demand due to ocean freight disruption.
Cargo revenue was S$2.1bn, up by S$93.6m for the financial year ended 31 March, said Singapore Airlines in its 15 May release.
Cargo and mail volumes increased 16.3% year on year and the cargo load factor (CLF) rose 1.6 percentage points to 56.1%.
However, yields decreased 7.8% due to increased competition, said SIA Group.
Cargo capacity rose 10.1% during the financial year.
As of 31 March, the Group’s cargo network comprised 132 destinations in 37 countries and territories. SIA operated seven freighters.
According to Planespotters, Singapore Airlines has seven 747-400Fs and also operates five leased 777Fs for DHL Aviation. It also has seven Airbus A350Fs on order.
The Group noted in its results documents that future cargo business performance was vulnerable to global trade issues.
"The global airline industry faces a challenging operating environment amid changing tariff policies and trade tensions, economic and geopolitical uncertainties, and continued supply chain constraints. These factors may impact consumer and business confidence, potentially affecting both passenger and cargo markets."
However, it also pointed to opportunities for expansion due to the trade and supply chain developments taking place in Asia.
"Shifts in global passenger and trade flows may also open new opportunities for the Group, with its well-diversified global passenger and cargo network.
"Its hub in Singapore offers a strategic advantage, given its position at the centre of growing economies in South East Asia, South Asia, and the wider Asia-Pacific region, and the Group’s strong presence in these markets."
Total Group revenue was S$19.4bn, up 2.8% year on year, but operating profit was down 37.3% year on year. Across the Group, there were higher fuel and staff costs, higher handling charges and higher passenger costs.
