Singapore Airlines’ soaring profits and Malaysia Airlines’ struggles in 2024 stem from a mix of scale, strategy and fleet modernity. While both carriers have navigated similar headwinds—rising fuel costs, currency swings and the post-COVID rebound—SIA’s record performance highlights how fleet investment, network breadth and a clear market positioning can translate into vastly different outcomes.
A Tale of Two Balance Sheets
In the financial year ending March 2025, Singapore Airlines Group posted its highest ever net profit: S$2.78 billion, a 3.9 percent increase on the previous year. Cargo strength and a one-time accounting gain of S$1.10 billion helped, but core operations also shone—operating profit reached S$1.71 billion. By contrast, Malaysia Aviation Group (MAG), parent of Malaysia Airlines, eked out just RM54 million (about US$12 million) in net profit for 2024—down 93 percent from RM766 million the year before. On an operating-profit basis, MAG managed roughly RM113 million, versus SIA’s S$1.71 billion.
Behind these headline figures is a stark disparity in revenue. In FY2024/25, SIA earned S$19.54 billion—up 2.8 percent year-on-year and at a record high. MAG’s full-year 2024 revenue was RM13.68 billion (around S$4.3 billion)—barely a quarter of SIA’s takings. Passenger numbers tell a similar story: SIA and its low-cost arm Scoot carried 39.4 million travelers (up 8.1 percent), while Malaysia Airlines and its affiliates served about 16.6 million passengers.
Yield and Load Factor: Charging for Quality
Filling seats is one thing; charging premium fares is another. SIA achieved an average load factor of 86.6 percent—the industry’s upper tier—and an average yield of S$0.103 per revenue-passenger kilometer (RPK). MAG’s load factor hovered around 80 percent, with average yield of 30.1 sen (≈S$0.086) per RPK. In practical terms, SIA commanded roughly 20 percent more revenue per mile flown—an edge that multiplies across billions of seat-kilometers.
Cargo provided an extra boost. In the third quarter of FY2024/25, SIA’s cargo revenue rose 9.7 percent year-on-year, helping double its quarterly profit. MASkargo also improved its load factors, but on an overall cargo network that is far smaller than SIA’s.
Fleet and Network: Modernity Meets Reach
Singapore Airlines’ fleet of 205 mainline aircraft boasts an average age of just 7 years and 8 months. High-efficiency jets—over 70 Airbus A350s, Boeing 787 Dreamliners and a dozen A380s—drive down fuel burn and maintenance costs. With 78 aircraft on order and a hub at Changi Airport, the group serves 128 destinations across six continents.
By contrast, Malaysia Airlines operates about 80 aircraft (mainly Airbus A330s and Boeing 737-800s) with an average age well above a decade. Although MAS has placed orders for A330neos and 737 MAX jets, fleet renewal is only now gathering pace. That older, smaller fleet limits Malaysia Airlines to roughly 67 destinations—mostly within the Asia-Pacific region—and hampers both frequency and aircraft utilization.
A broader, younger fleet allows SIA to tap lucrative long-haul routes—Asia to Europe or North America—while Scoot focuses on dense short-haul leisure corridors. SIA’s cargo arm similarly spans 132 destinations, capturing booming e-commerce demand. MASkargo, though improving, simply lacks the scale to match.
Brand and Business Model: Premium Versus Hybrid
Singapore Airlines has cemented its reputation as a five-star carrier. In the 2024 Skytrax World Airline Awards, it ranked second globally, winning “Asia’s Best Airline” and Best First Class. Major investments—such as a US$1.1 billion cabin retrofit for ultra-long-haul A350-900ULR aircraft—reinforce its premium positioning. This allows SIA to target high-yield business and first-class traffic even when leisure markets fluctuate.
Malaysia Airlines, by contrast, remains a hybrid full-service carrier. Efforts to juggle premium and budget segments under one brand have at times diluted its identity. After briefly partnering with AirAsia on low-cost routes, MAS refocused on full-service operations in 2012, but the legacy of mixed strategies lingers. Awards-wise, MAS placed around 39th globally in 2024—respectable, but a far cry from SIA’s podium finishes.
Operational Discipline and Recovery Dynamics
Both carriers faced rising fuel bills in FY2024/25—SIA’s fuel expense climbed 6 percent due to higher flying volumes, though an 8.5 percent drop in average oil prices and proactive hedging limited pain. MAG also grappled with fuel swings and weaker ringgit headwinds; older aircraft burn more fuel per seat-kilometer, compressing margins during price spikes.
The COVID-19 rebound favored SIA’s strategy. Pent-up demand in premium long-haul markets saw Asia–Europe and Asia–US routes fill rapidly, while cargo lift remained strong. Malaysia Airlines saw passenger numbers rise (16.6 million in 2024 vs 14.5 million in 2023), but faced capacity cuts due to maintenance delays late in the year. Timing matters: SIA’s smooth restart on business routes contrasted with MAS’s more leisure-heavy, regionally focused rebound.
Conclusion: Scale, Modernity and Market Focus
The gulf between Singapore Airlines’ S$2.78 billion profit and Malaysia Aviation Group’s RM54 million stems from more than just cargo booms or one-off gains. SIA’s larger, younger fleet and broader global network underpin higher load factors and yields. Its two-brand model—premium long-haul plus low-cost short-haul—captures diverse demand pockets efficiently. A well-defined brand promise, hefty cabin investments and disciplined cost management further cement its edge. Malaysia Airlines, with an older fleet, narrower reach and mixed market positioning, simply lacks the same scale or unit economics. As both carriers chart their next growth phases—be it further cabin upgrades at Changi or fleet modernization at KLIA—the choices they make now will determine whose balance sheet leads in the years to come.