Singapore Airlines (SIA) has announced a record-breaking net profit for the fiscal year 2024, marking a significant milestone in the airline's financial performance.
This achievement has not only resulted in a higher dividend payout for shareholders but also a substantial bonus for its dedicated staff.
Financial Highlights
SIA reported a net profit of $2.7 billion, a 24% increase from the previous year. This impressive performance is attributed to improved operating metrics, lower tax expenses, and profits from associates.
The airline's revenue rose by 7% to a record $19 billion, with passenger revenue increasing by 17.3% to $15.7 billion despite a 7.6% drop in passenger yields. Conversely, cargo revenue saw a significant decline of around 40% to $2.1 billion, due to reduced yields, although the volume of cargo transported increased by 1.7% thanks to robust demand in the e-commerce sector.
Staff Bonuses and Dividends
In recognition of their hard work, SIA's employees will receive a profit-sharing bonus of nearly eight months' salary, a notable increase from the 6.65 months awarded last year. This bonus includes an additional 1.5 months given for their exceptional efforts during the COVID-19 pandemic.
SIA also announced a final dividend of 38 cents per share, bringing the total annual payout to 48 cents per share. This is a significant increase from the 38 cents per share paid out in the previous fiscal year. The final dividend is expected to be paid on August 21, 2024, pending shareholder approval.
Operational Performance
The airline carried 36.4 million passengers during the fiscal year, a 37.6% increase from the previous year. The passenger load factor improved to a record 88%, with SIA achieving 87.1% and its low-cost subsidiary Scoot reaching 91.2%.
Despite the positive outlook, SIA cautioned that the airline industry continues to face challenges such as geopolitical tensions, economic uncertainties, supply chain constraints, and high inflation.
Nevertheless, SIA remains optimistic about the future, with strong forward bookings in North Asia and Southeast Asia underpinning its expectations for continued robust demand in the coming months.
Revamped Premium Economy Class
Adding to the excitement surrounding SIA's financial success is the airline's recent revamp of its Premium Economy Class, set to enhance the travel experience for passengers starting March 31, 2024.
I wrote a separate article covering this here.
Seriously, I cannot tell you how excited I am that we have a worthy premium economy class option as a Malaysian, and I would gladly take a stopover in Singapore ANYDAY over sitting in Malaysia Airlines' lousy products.
This overhaul introduces several significant upgrades, including an expanded selection of gourmet dining options and an exclusive amenity kit, marking a major improvement since the class was first introduced in 2015.
Final Thoughts
Singapore Airlines' record-breaking financial performance and generous staff bonuses underscore the airline's resilience and commitment to rewarding its employees for their hard work and dedication.
As a frequent traveler and avid miles collector, I am thrilled about these improvements and look forward to experiencing Singapore Airlines again. I can tell you that flying on the Singapore Airlines Boeing 737-8 MAX is the only time I'll never feel worried about being on a MAX aircraft!
Jokes aside, the combination of SIA's financial success and its commitment to customer satisfaction truly sets the airline apart in the competitive aviation industry.
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