Singapore Airlines Group has posted a record net profit. This comes on the back of robust demand for air travel driving record passenger revenue and load factors.
Record net profit
Singapore Airlines Group has posted a record net profit of $2,675 million. Group revenue rose $1,238 million (+7.0% year-on-year) to a record $19,013 million. Passenger flown revenue rose by $2,319 million (+17.3%) to $15,685 million, despite a 7.6% decline in passenger yields. Cargo flown revenue fell $1,485 million (-41.2%) to $2,119 million. While cargo loads increased by 1.7% due to the strong demand from the e-commerce segment, yields were 42.2% lower year-on-year.
Group expenditure increased $1,202 million (+8.0%) to $16,285 million. Non-fuel expenditure rose by $1,336 million (+13.5%), and was partially offset by a $132 million decrease (-2.5%) in net fuel cost. The increase in non-fuel expenditure was lower than the 16.0% increase in overall passenger and cargo capacity. On the other hand, net fuel cost fell despite higher volumes uplifted (+$918 million) and a lower fuel hedging gain (+$358 million), mainly due to an 18.5% decrease in fuel prices (-$1,281 million).
As a result, Group operating profit reached a record $2,728 million, up $36 million or 1.3% from a year before. The Group’s net profit improved by $518 million (+24.0%) to $2,675 million. This was mainly due to the better operating performance (+$36 million), a net interest income versus net finance charges a year before (+$215 million), lower tax expense (+$132 million)3, and a share of profits versus a share of losses of associated companies from the previous year (+$104 million).
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Numbers
The group says that the demand for air travel remained buoyant throughout FY2023/24, boosted by a rebound in North Asia as China, Hong Kong SAR, Japan, and Taiwan fully reopened their borders. Singapore Airlines and its low cost subsidiary Scoot carried a combined 36.4 million passengers, up 37.6% year-on-year. Passenger traffic grew 26.6%, outpacing the capacity expansion of 22.9%.
As a result, the Group passenger load factor (PLF) improved 2.6 percentage points to a record 88.0%. SIA and Scoot registered record PLFs of 87.1% and 91.2% respectively.
As of 31st March 2024, the Group’s operating fleet consists of 200 aircraft with an average age of seven years and three months. Singapore Airlines has 142 passenger aircraft and seven freighters, while Scoot has 51 passenger aircraft. In April 2024, the Group added one Airbus A350-900 and two Embraer E190-E2 aircraft to its fleet. As of 1 May 2024, the Group has 89 aircraft on orders.
The Group serves 118 destinations in 35 countries and territories, out of which 73 are served by Singapore Airlines and 67 by Scoot. The cargo network comprises of 123 destinations in 37 countries and territories.
The Group has announced a bonus salary of 8 months for all the employees. Recently, Emirates too posted a record profit and a 5-month bonus salary.
Featured image by PhocusWire
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