Singapore Airlines (SIA) has reported its highest net profit in its
76-year history, marking a significant turnaround from the challenges
faced during the Covid-19 pandemic. The airline attributed its success
to strong demand and the recovery of the global aviation industry.
SIA took decisive action at the onset of the pandemic, which enabled
it to build financial resilience and make strategic decisions ahead of
the recovery in air travel. The airline retained its staff and kept a
large proportion of its fleet operational, allowing it to ramp up
operations quickly when demand surged after Singapore reopened its
borders.
During the financial year 2022/23, SIA and its low-cost carrier,
Scoot, carried a total of 26.5 million passengers, a remarkable increase
of six times compared to the previous year. The passenger load factor
reached its highest level ever at 85.4%, with SIA achieving a record
load factor of 85.8% and Scoot at 83.9%. The cargo segment's performance
remained strong, with revenue 83% above pre-Covid levels despite softer
demand.
The group's financial performance reflects its commitment to offering
best-in-class products and services, as well as continued investment in
strategic initiatives. The revenue for the year reached a record
S$17.78 billion (US$13.24 billion), a 133.4% increase year-on-year,
while the net profit stood at S$2.16 billion, compared to a net loss of
S$962 million in the previous year.
The airline's expenditure grew by 83.4% to S$15.08 billion, primarily
due to increased fuel costs and non-fuel expenditure. However, the
group still managed to achieve a record operating profit of S$2.69
billion, reversing the previous year's loss.
Looking ahead, SIA remains optimistic about the demand for air
travel, particularly in East Asia. Forward sales across all cabin
classes remain healthy, with a strong pick-up in bookings to China,
Japan, and South Korea. However, the cargo demand is expected to remain
soft due to macroeconomic headwinds and recalibration of inventory
levels.