Singapore Airlines Announces Record Profits

Daniel Fowkes
16 May 2024
· Airlines 
A Singapore Airlines Airbus A380-800 at New York JFK

Singapore Airlines has become the latest company in the aviation industry to report record full-year results, just days after Emirates announced similar results.

The group saw its highest full-year operating net profits amid robust demand levels. In an incredibly successful year, the group also reported record load factors and passenger revenue.

Annual net profits were at roughly USD 2 billion or (S$2.73 billion) for the financial year ending March 2024, an increase from the previous financial year.

The airline’s financial performance was thanks to fantastic demand across North Asia, including a key focus on markets such as China, Hong Kong, Japan, and Taiwan. While the group’s executives were cautious to say that demand hadn’t fully returned, the rebound was more than present, with significant positives across the board.

36.4 million customers were carried across Singapore Airlines and low-cost brand Scoot, up almost 40%. In addition to the significant growth in passenger traffic, the group also saw passenger traffic increase by 26.6%. Meanwhile, load factors reached a combined 88%.

Singapore Airlines specifically registered passenger load factors (PLF) at 87.1%, and Scoot saw theirs come in at 91.2%. The low-cost alternative to Singapore Airlines has increased in popularity over the years thanks to the affordability and high-quality service provided.

While the group reported an incredibly successful financial year, it also warns of many ongoing challenges across the industry. These challenges make maintaining a robust schedule at times difficult. The airline says that geopolitical tensions and supply chain problems amid inflation rates continuing to rise have meant they’ve had to be careful with their forecasts.

Cargo Results Fall As Expected

For the second half of the financial year, Singapore Airlines reported a 29.7% drop in cargo revenue, which fell to S$466 million.

Ultimately, this fall has been seen globally as the freight market has plateaued following increased growth during the pandemic.

Singapore Airlines operates a diverse fleet of aircraft for its Cargo division, with the Boeing 777F being one of the newer additions to work alongside the Boeing 747F fleet – photo: Melvin Loi

Analysts have warned that this trend would occur for some time and is now being seen. Singapore Airlines Group, however, believes it’s still well-positioned to meet the drop and will adjust its network and forecast accordingly.

Examining The Fleet

For the fleet, Singapore Airlines says that there are more than 200 aircraft on the books, averaging seven years and three months.

For Singapore Airlines, this operation comprises 142 passenger aircraft with seven freighters on the boos as well. Low-cost unit Scoot has 51 passenger aircraft, with the newly delivered E190-E2 added to operations only recently.

As of May 1, 2024, the group had 89 aircraft on order, which is expected to be pivotal to aircraft retirements, fleet overhaul plans, and future growth.

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