June 26, 2024
Aviation Business

SIA Group Soars High With Record Profit Of $2.67 Billion

8 Months Bonus For Carrier’s Staff

The Singapore Airlines (SIA) Group has reported its highest-ever full-year net profit of $2.67 billion for the fiscal year 2023-2024, marking a significant milestone in its history. The remarkable performance comes amidst robust demand for air travel, driving record passenger revenue and load factors.

The financial results, released by the SIA Group, reveal a buoyant demand for air travel throughout FY2023/24, particularly in North Asia, as borders in China, Hong Kong SAR, Japan, and Taiwan fully reopened.

This surge in demand propelled SIA and Scoot to carry 36.4 million passengers, marking a 37.6% increase year-on-year. Passenger traffic grew by 26.6%, outpacing the capacity expansion of 22.9%, resulting in a record passenger load factor (PLF) of 88.0%.

SIA and Scoot achieved record PLFs of 87.1% and 91.2%, respectively.

The SIA Group’s revenue soared to $19.01 billion, marking a 7.0% increase year-on-year. Passenger flown revenue surged by $2.3 billion (+17.3%) to $15,685 million, despite a 7.6% decline in passenger yields.

However, cargo flown revenue decreased by $1.48 billion (-41.2 %) to $2,119 million, attributed to lower yields despite increased cargo loads.

SIA Group
Suite on a Singapore Airlines A380 aircraft. Credit: Singapore Airlines

Last year, Singapore Airlines clinched the world’s best airline title, per the esteemed Skytrax World Airline Awards. This marked the airline’s fifth win in the 23-year history of the awards, reaffirming its position as a leader in the global aviation industry.

Despite the challenges posed by geopolitical tensions, macroeconomic uncertainties, inflationary pressures, and supply chain constraints, the SIA Group’s robust foundations and long-term strategic initiatives have positioned it firmly to capture future growth opportunities.

Operating Profit

The Group’s operating profit reached a record $2.72 billion, while the net profit surged by $518 million (+24.0%) to $2.6 billion.

The SIA Group’s fleet development and network expansion remain integral to its growth strategy.

As of March 31, 2024, the Group’s operating fleet comprised 200 aircraft, with plans for further expansion with 89 aircraft on order. The passenger network covered 118 destinations in 35 countries and territories, while the cargo network spanned 123 destinations in 37 countries and regions.

As part of its commitment to shareholders, the Group’s board of directors has proposed a final dividend of 38 cents per share for FY2023/24, resulting in a total dividend payout of 48 cents per share. This significant dividend yield of 7.5% reflects the company’s recognition of shareholders’ integral role in its operations and success.

Given the bumper profit, Singapore Airlines is rewarding its employees with a bonus worth eight months of salary.

Looking ahead, the SIA Group is steadfast in its commitment to maintaining its leadership position in the aviation industry. Focusing on service excellence, product leadership, and network connectivity underpins this commitment.

Moreover, the Group’s dedication to sustainability initiatives, such as adopting Sustainable Aviation Fuel (SAF) and community engagement efforts, instils optimism about its long-term prospects.

As the world’s most awarded airline, SIA continues to set benchmarks for excellence in the airline industry, embodying its brand promise of delivering exceptional service and innovation to passengers worldwide.

Featured image: A Singapore Airlines A380 aircraft in flight. Credit: Singapore Airlines

    Arnold Pinto

    Arnold Pinto

    Arnold Pinto is an award-winning journalist with wide-ranging Middle East and Asia experience in the tech, aerospace, defence, luxury watchmaking, business, automotive, and fashion verticals. He is passionate about conserving endangered native wildlife globally. Arnold enjoys 4x4 off-roading, camping and exploring global destinations off the beaten track.
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