Singapore Airlines pays staff 8-month salary bonus after $2.675 billion record profit

Singapore Airlines (SIA Group) has announced its remarkable financial performance for the fiscal year FY2023/24, achieving its highest full-year operating and net profits in the Group’s history. The robust demand for air travel has been a key driver, resulting in record passenger revenue and load factors. Despite facing challenges such as geopolitical tensions, macroeconomic uncertainties, inflationary pressures, and supply chain constraints, the Group’s solid foundations and strategic initiatives position it strongly to capitalize on future growth opportunities.

Financial Highlights

For FY2023/24, the Group reported total revenue of $19,013 million, marking a 7.0% increase compared to the previous year. Passenger flown revenue rose significantly by 17.3%, reaching $15,685 million, driven by a rebound in North Asia and robust passenger traffic growth. Cargo flown revenue, however, saw a decline of 41.2% to $2,119 million, attributed to lower yields despite increased cargo loads.

Total expenditure increased by 8.0% to $16,285 million, with non-fuel expenditure rising by 13.5%. Net fuel cost decreased by 2.5%, despite higher volumes uplifted, primarily due to a drop in fuel prices. As a result, the Group’s operating profit reached a record $2,728 million, up 1.3% from the previous year. Net profit surged by 24.0% to $2,675 million, reflecting improved operating performance, lower tax expenses, and a share of profits from associated companies.

Operational Performance

The demand for air travel remained strong throughout FY2023/24, with a 37.6% year-on-year increase in passengers carried by SIA and Scoot combined. Passenger traffic grew by 26.6%, surpassing capacity expansion, leading to a record passenger load factor of 88.0%. SIA and Scoot achieved remarkable load factors of 87.1% and 91.2%, respectively.

The Group’s fleet consisted of 200 aircraft with an average age of seven years and three months. Noteworthy fleet additions included one Airbus A350-900 and two Embraer E190-E2 aircraft. The Group’s passenger network covered 118 destinations in 35 countries and territories, with plans for route expansions and service enhancements.

Dividend and Future Outlook

The Board of Directors proposed a final dividend of 38 cents per share for FY2023/24, resulting in a total payout of 48 cents per share. Looking ahead, the Group anticipates continued healthy demand for air travel, albeit with potential challenges such as increasing competition and downward pressure on passenger yields. The cargo segment is expected to maintain its resilience, supported by e-commerce demand and strategic market monitoring.

Commitment to Sustainability and Community Impact

The SIA Group remains committed to sustainability goals, aiming to fulfil 5% of its total fuel requirements with Sustainable Aviation Fuel (SAF) by 2030. Additionally, the Group is dedicated to making a positive impact in the communities it serves, with plans to establish a foundation supporting individuals in need and contributing to Singapore’s aviation industry advancement.

In conclusion, the SIA Group’s record-breaking financial performance underscores its resilience, strategic foresight, and commitment to excellence in the face of challenges. With a strong operational foundation, innovative initiatives, and unwavering dedication to sustainability and social responsibility, the Group is poised for continued success in the dynamic aviation landscape.

Singapore Airlines, an emblem of excellence in the aviation industry, has recently made headlines once again, not just for its soaring profits but also for its remarkable gesture towards its workforce. In a move that underscores its commitment to employee welfare, the airline giant has announced that its staff will receive bonuses equivalent to approximately eight months’ salary, following the disclosure of its best financial performance in its 77-year history.

Generous Bonuses for Dedicated Staff

The staggering bonus, amounting to a 32-week profit-sharing incentive, reflects the airline’s acknowledgment of its employees’ unwavering dedication and hard work. This bonus, equal to 7.94 months of pay, is not merely a spontaneous act of gratitude but is entrenched in a longstanding agreement with the airline’s unions, embodying a harmonious relationship between the company and its workforce.

It’s worth noting that this is not the first time Singapore Airlines has exhibited such munificence towards its employees. Just a year ago, the company awarded its then-highest bonus, comprising a profit-sharing component equivalent to 6.65 months of salary, coupled with an ex-gratia bonus of 1.5 months’ pay. This consistency in rewarding its workforce underscores the airline’s ethos of recognizing and appreciating the pivotal role its employees play in its success.

Record-breaking Financial Performance

The announcement of these hefty bonuses comes on the heels of Singapore Airlines reporting its most exceptional financial results to date. For the fiscal year 2023-2024, the airline recorded a net profit of S$2.675 billion (approximately $2.0 billion USD), marking a remarkable 24% increase compared to the previous year. This financial feat is particularly notable given the challenges posed by the pandemic, which saw the airline grappling with losses for three consecutive years prior to this remarkable turnaround.

A Year of Milestones

Delving deeper into the financial metrics, the numbers reveal a year marked by significant milestones and achievements for Singapore Airlines. Notably, the airline witnessed a 37.6% surge in passenger numbers, reflecting a robust rebound in demand as travel restrictions eased. Despite a marginal decrease in revenue per available seat kilometer, the airline managed to enhance its load factor, a testament to its strategic capacity management amidst evolving market dynamics.

While the aviation industry at large faced headwinds in cargo revenue due to shifting demand patterns, Singapore Airlines managed to navigate these challenges adeptly. Despite a 41.2% dip in cargo revenue compared to the previous year, the airline’s cargo segment still outperformed pre-pandemic levels by a significant margin, showcasing its resilience and adaptability in an ever-changing landscape.

A Testament to Resilience and Reward

In essence, Singapore Airlines’ record-breaking profits and generous bonuses serve as a testament to the resilience of the airline and its workforce in the face of adversity. By prioritizing employee well-being and recognizing their invaluable contributions, the airline not only fosters a culture of loyalty and dedication but also sets a commendable example for the industry at large.

As the aviation sector embarks on the path to recovery, Singapore Airlines emerges as a beacon of optimism, demonstrating that with resilience, innovation, and a steadfast commitment to its workforce, even the most formidable challenges can be overcome.