Singapore Airlines Group (SIA) has reported record half-year operating and net profits for FY2023/24, fueled by robust demand for air travel during the Northern Summer travel season. The success was significantly influenced by the rebound in passenger traffic to North Asia. This rebound included the full reopening of China, Hong Kong SAR, Japan, and Taiwan. The improved passenger traffic played a pivotal role in the overall positive outcome.
SIA and Scoot collectively carried 17.4 million passengers in the first six months, marking a substantial 52.3% year-on-year increase. Passenger traffic grew by 38.0%, surpassing the capacity expansion of 29.0%. As a result, the Group’s passenger load factor (PLF) reached a record high of 88.8%. Furthermore, both SIA and Scoot achieved PLFs of 88.0% and 91.3%, respectively.
Despite challenges in air freight demand, which stemmed from inventory overhang and geopolitical factors, the group experienced a noteworthy increase in overall revenue. This increase amounted to $745 million (+8.9%), reaching a total of $9,162 million. In contrast, the cargo flown revenue faced a decline, dropping to $1,060 million (-49.5%). However, the rise in passenger flown revenue by $1,571 million (+26.3%) to $7,550 million effectively offset this decline.
Group records higher operating profit
The Group recorded an operating profit of $1,554 million, a $320 million improvement from the previous year. The net profit stood at $1,441 million, showing a remarkable increase of 55.4% compared to the previous year.
During the second quarter of FY2023/24, the Group accomplished a record quarterly operating profit. This achievement amounted to $799 million, showcasing a notable increase of 17.8% from the previous year. Passenger-flown revenue increased by $570 million (+17.3%) to $3,873 million, driven by a 28.9% growth in traffic. Cargo flown revenue faced a dip, but cargo yields remained 28.5% above pre-Covid levels.
SIA’s fleet development included the addition of three aircraft, enhancing its operating fleet to 202 aircraft. The group’s passenger network spanned 119 destinations across 36 countries and territories. There are plans to increase services during the Northern Summer 2024 operating season. The expansion aims to enhance the group’s presence and connectivity.
The proposed merger of Air India and Vistara, expected to give SIA a 25.1% stake in an enlarged Air India Group, remains on course pending regulatory approvals.
Despite the positive outlook, the Group remains vigilant about potential challenges, including significant capacity restoration across the industry and geopolitical risks. The ongoing Transformation programs aim to strengthen the Group’s position, ensuring continued growth and financial resilience.
The company has also declared an interim dividend of 10 cents per share, totaling $297 million, for the half-year ended 30 September 2023.
In conclusion, Singapore Airlines Group’s strong performance reflects the resilience of the aviation industry, coupled with strategic initiatives and adaptability to market dynamics.