Airlines

Singapore Airlines to hand out salary bonuses after record profits, sources report

Singapore Airlines to hand out salary bonuses after record profits, sources report
The company expects a strong first quarter in the next financial year (Image credit: Adobe Stock)

The Singapore Airlines Group has announced record earnings, achieving an operating profit of US$2bn for the 2023-24 financial year.

These earnings mark the highest full year net profit achieved in the group’s history, in spite of ongoing geopolitical challenges and supply chain issues.

With these high earnings, the group’s CEO Goh Choon Phong is poised to provide staff, including pilots, with a profit-sharing bonus of 7.94 months, as sources told The Straits Times.

Although the group chief declined to comment, the move will be in line with a similar bonus provided to staff after the group also posted profits in the previous financial year.

The record profits can mainly be attributed to strong demand and a rebound in travel in North Asia as areas such as China, Hong Kong, Japan and Taiwan fully open their borders.

Through both its airlines, Singapore Airlines and Scoot, the group reported that it carried 37.6 per cent more passengers than the previous year.

Whilst cargo revenue fell, the loads remained strong due to increasing demand in the e-commerce sector.

The company expects a strong first quarter in the next financial year, but also anticipates high competition on capacity from airlines in the region that will impact the company’s overall passenger yield.

The Singaporean airline giant however maintains that it is in a strong position to adjust to market needs and will “closely monitor” future market conditions and demand patterns.

It said in a statement: “The SIA Group is well-positioned to seize emerging growth opportunities and navigate uncertainties thanks to its strong foundations and long-term strategic initiatives.”

It added that enhancing the synergies between main carrier Singapore Airlines and low-cost affiliate Scoot will both provide better options for travellers as well as give the company more flexibility in adapting to changing market dynamics.

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