Singapore Airlines Group Posts Record Profit

May 16, 2023
Singapore Airlines

Singapore Airlines Group’s operating profit came in at a record S$2,692 million, reversing the $610 million loss in FY2021/22.

JOIN: YouTube Channel

GET: Accurate MH370 Information From Newsletter

SEE: GT’s Radar Slams Netflix MH370 Doco

Operating profit for Singapore Airlines was a record $2,601 million, an increase of $2,713 million from the previous financial year. Scoot achieved a record operating profit of $148 million, up $602 million from FY2021/22.

The Group posted a record net profit of $2,157 million for the year, versus a $962 million net loss in the previous year (+$3,119 million). The Group said this was mainly driven by better operating performance (+$3,302 million) and lower net finance charges (+$338 million), and partially offset by a tax expense versus a tax credit last year (-$615 million).

Group revenue increased by $10,160 million (+133.4%) year-on-year to a record $17,775 million. Passenger revenue rose $10,560 million (+376.3%) to $13,366 million as traffic grew 449.9%, outpacing the capacity expansion of 94.0%.

Revenue per available seat-kilometre (RASK) was 10.0 cents, the highest yearly RASK in the Group’s history. Cargo flown revenue fell $735 million (-16.9%) to $3,604 million as a result of lower cargo loads (-11.4%) and yields (-6.2%). Notwithstanding, this was the second-highest annual cargo revenue figure in the Group’s history.

SIA took delivery of one Airbus A350-900 in March 2023, and one Boeing 787-10 in April 2023. These aircraft have since joined the operating fleet, alongside one 737-83 aircraft post the retrofit of its cabin.

As of 31 March 2023, the Group had 195 aircraft in its operating fleet comprising 188 passenger aircraft and seven freighters. SIA’s operating fleet comprised 133 passenger aircraft and seven freighters, while Scoot had 55 passenger aircraft.

With an average age of six years and nine months, the Group fleet is one of the youngest and most fuel-efficient in the airline industry. This allows it to pursue operating efficiencies and continue offering world-class products and services to its customers. This also supports the Group’s decarbonisation goals, as operating a young fleet of new-generation aircraft is the most effective and direct way for an airline to materially lower carbon emissions in the near term.

In the fourth quarter of FY2022/23, SIA reinstated services to Guangzhou, while Scoot resumed services to Balikpapan and Qingdao. As of 31 March 2023, the Group’s passenger network8 covered 109 destinations in 36 countries and territories. SIA served 74 destinations while Scoot served 58 destinations.

For the Northern Summer operating season (26 March 2023 to 28 October 2023), the Group will expand its services to China with the resumption of Scoot’s flights to Haikou, Ningbo, and Xi’an (April 2023), Nanning and Shenyang (May 2023), Jinan (July 2023), and Nanchang (August 2023). Scoot has increased flight frequencies to Athens, Fuzhou, Guangzhou, Hangzhou, Langkawi, Makassar, Manado, Penang, Perth, TaipeiHokkaido (Sapporo), Tianjin, and Zhengzhou. SIA will mount supplementary flights to Barcelona, Frankfurt, and Rome to meet the higher demand during the 2023 summer peak and resume services to Busan in August 2023. To align capacity with demand projections, SIA will suspend services to Vancouver in October 2023 and Scoot will suspend operations to Gold Coast in July 2023.