AviationThe airline enjoys a spectacular turnaround from previous year's S$962 million net loss to this year’s record S$2.16 billion profit.

Singapore Airlines posts record profit in 76-year history

In FY 2022/23, SIA and Scoot carried a total of 26.5 million passengers.
In FY 2022/23, SIA and Scoot carried a total of 26.5 million passengers. Photo Credit: Adobe Stock/Andrey Armyagov

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.

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