Singapore's soaring ambitions: Changi Airport and SIA prepare for the next takeoff
'Build and they will come' may be the idea behind the construction of Changi Airport's Terminal 5, which will be able to handle another 50 million passengers annually when the first phase is completed in the mid-2030s.
The airport already seems to have excess capacity. With a capacity to handle 90 million passengers annually, Changi recorded 68.4 million passenger movements in the financial year 2024/25 ended March 31, according to a Changi Airport Group (CAG) press release dated May 24. That was more than any recent year. Passenger movements totalled 62.5 million in 2023/24 and 42.6 million in 2022/23 after dropping during COVID to 5.2 million in 2021/22 and 1.1 million in 2020/21 from 62.9 million in 2019/20, according to the CAG 2024 annual report. Changi Airport's soaring profit
However, despite operating below capacity, the airport is a goldmine. Net profit jumped from S$431 million in 2023/24 to S$841 million in 2024/25. Revenue grew from S$2.7 billion to S$3 billion in tandem with the rise in passenger traffic. One of the world's busiest airports, Changi now links Singapore directly to about 170 cities globally, with close to 100 airlines operating more than 7,200 flights weekly.
Passenger movements were much lower – 53.7 million a year – when the Terminal 5 construction project was announced by the then Prime Minister Lee Hsien Loong in 2013. He said then that the new terminal would double the airport's passenger capacity. Changi didn't have to be so big at the time, but the planners were building for the future. See also Education: Goodbye Streaming, Hello Full Subject-Based Banding
Aviation is a business run on high hopes and big dreams. The business just had a bumper year. 'Airlines delivered a combined net profit of $32.4 billion in 2024 when passenger numbers reached a new high of 4.8 billion,' says the International Air Transport Association (IATA) in its 2025 Annual Review. SIA Group profit and revenue
The SIA Group rode this wave of growth with resounding success. It posted a record net profit of S$2.8 billion in 2024/25, bolstered by a one-off non-cash gain of S$1.1 billion from the Air India–Vistara merger. Together, SIA and its low-cost subsidiary Scoot carried a record 39.4 million passengers while group revenue reached a new high of S$19.54 billion.
As of March 31, 2025, the SIA Group operated a fleet of 205 aircraft with an average age of seven years and eight months. This included 145 passenger planes and seven freighters under SIA, and 53 passenger aircraft under Scoot. In April 2025, the group added one Airbus A321neo and one Boeing 787-8 — and, as of May 1, the group had another 78 aircraft on order. Its combined passenger network spanned 128 destinations across 36 countries and territories, with SIA serving 79 destinations and Scoot flying to 71. See also A four-step video in renewed attempt for clean toilets
Both Changi Airport and SIA continue to shine on the global stage. Changi was named Skytrax World's Best Airport in 2025, while Singapore Airlines ranked second in Skytrax's 2024 list of the world's best airlines, just behind Qatar Airways. Fierce competition
Yet, the competition is fierce. In Northeast Asia, Hong Kong International Airport and Incheon International Airport (Seoul) are major contenders, supported by carriers like Cathay Pacific, Korean Air, and Asiana Airlines. Within Southeast Asia, Changi faces regional rivals in Bangkok Suvarnabhumi, Kuala Lumpur International, and Jakarta Soekarno-Hatta airports. Airlines such as Thai Airways, Malaysia Airlines, Garuda Indonesia, and fast-growing low-cost carriers like AirAsia and Lion Air offer aggressive pricing and expansive networks. Further afield, Middle Eastern giants like Dubai International and Doha's Hamad International, along with their flagship carriers Emirates and Qatar Airways, also compete heavily in the long-haul and transit passenger segments.
Despite this, Singapore's aviation ecosystem enjoys key competitive advantages. Changi is widely praised for its efficiency, passenger experience, and seamless connectivity. SIA's reputation for exceptional service, a modern fleet, and strategic global partnerships enhances its appeal to international travellers.
Looking ahead, growth prospects remain strong. The rise of the Asian middle class, increasing disposable incomes, and an appetite for international travel are likely to fuel sustained demand. For Singapore, a well-connected aviation hub is vital—not just for tourism, but for trade, investment, and its standing as a global business centre.
'The aviation ecosystem now contributes 5% of our GDP, and creates and sustains many good jobs for Singaporeans,' as Prime Minister Lawrence Wong said at the Terminal 5 groundbreaking ceremony on May 14.
Nonetheless, challenges persist. Geopolitical tensions, economic uncertainty, and the aviation industry's urgent need to adopt sustainable practices demand vigilance and adaptability. Environmental pressures are rising: airlines are under scrutiny to reduce emissions. In response, SIA is exploring sustainable aviation fuels and acquiring more fuel-efficient aircraft, while Changi is rolling out energy-saving measures and tapping renewable energy sources.
The airline and the airport's efforts to reduce carbon emissions and save energy stem from the same vision that underpins Terminal 5. This is more than just infrastructure expansion—it is a statement of intent. Singapore is building for the future. The terminal may seem outsized for today, but it is designed for tomorrow, befitting a nation that will continue to grow.
Featured image by Depositphotos (for illustration purposes only)
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