The agreement between Singapore Airlines and Tata Sons (Tata) will give Air India an additional SGD 360 million (USD 267 million). After Air India is acquired by Tata and merges with Vistara Airlines, it will give SIA a 25.1% interest in the larger Air India group.

One of the important strategic objectives for future expansion stated in the quarterly financial report is the November 2022 agreement between Singapore Airlines and Tata Sons to further contribute USD 267 million to Air India. Regulations must still approve this agreement.

SIA claimed in the release, “With a significant presence in each of India’s major airline segments, the combined company will be four to five times greater in scale than Vistara.” “The proposed acquisition will increase SIA’s footprint in India, improve its multi-hub strategy, and enable it to continue directly competing in this big and quickly expanding aviation market.”

The airline added, “The partnership plan of the SIA Group includes deeper cooperation with similar carriers.” “As a result, SIA and its partners can expand traffic to their hubs, give customers more options, and broaden the Group’s geographic reach.”

Singapore Airlines (SIA) said last week that its financial year’s total profits reached SGD 1,555 million, or 628 million Singapore dollars (SGD), for the third quarter, which concluded in December (USD 1,152 million). They are the most money the airline has ever made in a quarter and the first nine months of a fiscal year combined.

Following the COVID epidemic, Singapore was among the first Asian nations to reopen, which helped the country’s tourism business and the national airline. The airline managed to raise SGD 22.4 billion (USD 16.6 billion) during COVID, including SGD 15 billion from shareholders through sales of shares and convertible bonds, the largest of which was state investment firm Temasek Holdings. This was in addition to government grants to affected industries during COVID. A cash balance of SGD 15.4 billion was still present as of December 2022.

The total income for SIA increased by SGD 358 million (USD 265 million), or 8%, quarter over quarter to reach a record-high SGD 4,846 million (USD 3,589 million).

Revenue from passengers carried climbed by 14%, or SGD 463 million, to SGD 3,767 million as traffic surged by 12.2% during the quarter, surpassing capacity growth by 11.1%. The highest quarterly RASK in the Group’s history was 10.6 Singapore cents, or revenue per available seat kilometre (RASK).

The amount of cargo flown-in income decreased by 14.1%, or SGD 141 million (USD 104 million), to SGD 862 million (USD 638 million). Lower yields, which were down 14.6%, were somewhat offset by a minor increase in loads, up 0.6%.

The amount spent rose 7.4%, or SGD281 million (USD208 million), quarter over quarter to SGD4,091 million (USD3,030 million). This included an SGD 90 million drop (-6.3%) in net fuel expense, which partially offset an SGD 371 million (15.5%) increase in non-fuel spending.

Since the US dollar fell 6.1% against the Singapore dollar at the conclusion of the current quarter, larger foreign exchange losses of SGD 194 million (USD 144 million) were a major factor in the growth in non-fuel spending exceeding the increase in capacity. Due mostly to a 13% decrease in fuel prices, net fuel costs decreased to SGD 1,333 million (USD 987 million). Lower fuel hedging benefits (+ USD 19 million) and larger volumes uplifted (+ USD 103 million) partially offset this.