SINGAPORE- One of the World’s best carriers, Singapore Airlines (SIA) reported a record full-year net profit on May 15 and is planning to increase dividend payouts for shareholders and offer larger bonuses for staff.
According to sources who shared a screenshot with The Straits Times, SIA’s chief executive Goh Choon Phong announced a profit-sharing bonus of 7.94 months for employees, including pilots. This is an increase from the 6.65-month bonus most staff received in 2023, with some receiving an additional 1.5 months for their efforts during the COVID-19 pandemic.
Singapore Airlines Record Profit in 2024
The national carrier’s earnings rose 24 percent to $2.7 billion for the fiscal year ending March 31, 2024, driven by improved operating performance, lower tax expenses, and profits from associates.
Revenue climbed 7 percent to a record $19 billion, with passenger turnover increasing by 17.3 percent to $15.7 billion, despite a 7.6 percent decline in passenger yields.
Sales from cargo dropped by around 40 percent to $2.1 billion. SIA noted that while cargo loads rose by 1.7 percent due to strong e-commerce demand, yields were 42.2 percent lower than the previous year but nearly 30 percent above pre-pandemic levels.
Expenditures increased by 8 percent to $16.3 billion. Non-fuel expenses went up by 13.5 percent, whereas net fuel costs decreased by 2.5 percent.
SIA mentioned that demand for air travel remained strong throughout the year, driven by the reopening of borders in North Asia, including China, Hong Kong, Japan, and Taiwan.
Together, SIA and its low-cost carrier Scoot (TR) transported 36.4 million passengers, marking a 37.6 percent increase compared to the previous year.
Passenger loads increased by 2.6 percentage points to a record 88 percent, with SIA reaching a new high of 87.1 percent and Scoot achieving 91.2 percent.
The final dividend will be paid on August 21, 2024, pending shareholder approval.
New Aircraft and Routes
As of March 31, 2024, the Group’s operating fleet consisted of 200 aircraft, with an average age of seven years and three months. SIA operated 142 passenger aircraft and seven freighters, while Scoot had 51 passenger aircraft.
In April 2024, the Group added one Airbus A350-900 and two Embraer E190-E2 aircraft to its fleet. As of May 1, 2024, the Group had 89 aircraft on order.
The Group’s passenger network covered 118 destinations in 35 countries and territories as of March 31, 2024. SIA served 73 destinations, and Scoot served 67. The cargo network included 123 destinations in 37 countries and territories.
For the Northern Summer 2024 operating season (March 31, 2024, to October 26, 2024), services will increase to Barcelona, Beijing, Darwin, Hong Kong SAR, Houston, Kuala Lumpur, Melbourne, Milan, Perth, Rome, Seattle, Shanghai, Taipei-Tokyo (Narita), and Yangon.
SIA launched services to Brussels in April 2024 and will start operations in London (Gatwick) in June 2024.
Scoot began Embraer E190-E2 operations on May 7, 2024, with flights to Krabi. The aircraft will also serve existing destinations such as Hat Yai, Miri, and Kuantan, along with new destinations Koh Samui (starting in May 2024) and Sibu (starting in June 2024).
Using this aircraft on thinner routes to non-metro destinations in the Asia-Pacific region allows the Group to unlock significant growth opportunities.
Future Outlook
In the first quarter of FY2024/25, the demand for air travel remains robust, driven by a strong increase in forward bookings to North Asia and Southeast Asia. However, passenger yields are expected to moderate due to the increased capacity added by airlines, particularly in the Asia-Pacific region.
The Group will closely monitor market conditions and adjust our network as needed to align with demand patterns.
Cargo demand improved towards the end of FY2023/24, fueled by strong e-commerce demand, resilient and growing segments like perishables and concerts, and a shift to air freight by some shippers due to security concerns in the Red Sea region.
While yields have remained above pre-pandemic levels in FY2024/25, there is ongoing downward pressure due to increasing industry bellyhold capacity. The Group will keep a close watch on key trade lanes to maintain the competitiveness of the cargo segment.
The airline industry continues to face challenges such as rising geopolitical tensions, an uncertain macroeconomic climate, supply chain constraints, and high inflation in many parts of the world.
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