Singapore Airlines (SIA) Group capped off a remarkable financial year (FY2023/24) with its strongest performance ever.
Singapore Airlines (SIA) Group has posted its financial performance for the financial year FY2023/24. In what was a banner year, it shows the highest full year operating and net profits in the Group’s history.
Buoyed by a robust rebound in air travel, the Group achieved record highs in what was a year fraught with external headwinds for the industry.
Geopolitical tensions, macroeconomic uncertainties, inflationary pressures, and supply chain constraints posed challenges for the commercial aviation sector.
Passenger Demand
The year saw a significant surge in passenger demand, particularly with the reopening of key North Asian destinations like China, Hong Kong SAR, Japan, and Taiwan.
SIA and Scoot airlines combined carried a staggering 36.4 million passengers, reflecting a healthy 37.6% increase year-on-year.
This growth outpaced capacity expansion (22.9%), leading to a record-breaking passenger load factor (PLF) of 88.0% for the Group.
SIA and Scoot individually achieved impressive PLFs of 87.1% and 91.2%, respectively.
Financial Performance
Group revenue climbed to a record $19,013 million, representing a 7.0% year-on-year increase. Passenger flown revenue skyrocketed by $2,319 million (17.3%) to $15,685 million, despite a slight dip in passenger yields (7.6%).
However, cargo flown revenue witnessed a decline of $1,485 million (41.2%) to $2,119 million. Cargo loads experienced a modest increase (1.7%) driven by the e-commerce boom. Despite this, cargo yields fell significantly (42.2%) compared to the previous year.
However, it’s important to note that cargo yields remain 29.8% higher than pre-pandemic levels.
The Group’s operating profit reached a record $2,728 million, marking a $36 million (1.3%) improvement year-on-year.
Net profit also witnessed a significant rise of $518 million (24.0%) to a record $2,675 million. This can be attributed to a number of key factors.
These include better operating performance, improved net interest income, lower tax expenses, and increased profits from associated companies.
Fleet and Network
As of March 31, 2024, the Group boasted a young and modern fleet of 200 aircraft with an average age of just seven years and three months.
SIA continues to invest in its fleet, adding an Airbus A350-900 and two Embraer E190-E2 aircraft in April 2024. They currently have 89 additional aircraft on order, signifying a commitment to future growth.
The Group’s passenger network currently spans 118 destinations across 35 countries, with SIA serving 73 destinations and Scoot serving 67.
Their cargo network reaches an impressive 123 destinations in 37 countries.
Network Expansion and Strategic Growth
Several exciting developments are planned for the Northern Summer 2024 operating season. Passengers can expect increased frequencies on popular routes like Barcelona, Beijing, Darwin, Hong Kong SAR, Houston, and many more.
SIA recently launched new services to Brussels and will soon commence operations to London (Gatwick).
Scoot is also expanding its network with the introduction of Embraer E190-E2 aircraft, serving destinations like Krabi, Koh Samui, Sibu, and more.
This strategic deployment allows the Group to tap into the vast growth potential of non-metropolitan routes within the Asia-Pacific region.
Future Outlook
The outlook for the first quarter of FY2024/25 remains positive, with strong forward bookings to North Asia and Southeast Asia.
However, passenger yields are expected to moderate due to increased competition, particularly within the Asia-Pacific region.
The Group remains vigilant and will adjust its network strategy as needed to adapt to evolving market conditions.
The cargo segment also witnessed a positive trend towards the end of FY2023/24, driven by e-commerce, resilient specialty cargo segments, and a shift towards air freight due to regional security concerns.
While cargo yields remain above pre-pandemic levels, downward pressure is expected as industry bellyhold capacity increases.
The Group will continue to closely monitor key trade lanes to ensure the competitiveness of its cargo operations.
Despite these challenges, the airline industry is experiencing a welcome resurgence. Rising geopolitical tensions, economic uncertainties, supply chain constraints, and inflation pose ongoing hurdles.
Overall, Singapore Airlines Group is well-positioned for continued success, backed by its record-breaking performance and strategic vision for the future.
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