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The Singapore Airlines (SIA) Group has announced robust financial results for the third quarter of FY2023/24, showcasing resilience amid ongoing challenges in the global aviation industry. With a net profit of USD 659 million and passenger capacity nearing pre-pandemic levels, the Group remains optimistic despite continued headwinds.
Record revenue
SIA Group achieved a record quarterly revenue of USD 5,082 million, driven by robust passenger demand. Passenger flown revenue surged by 10.6 per cent to USD 4,165 million, marking a significant milestone in the Group’s history.
Despite challenges, the Group recorded a net profit of USD 659 million, reflecting a 4.9 per cent increase compared to the previous year. The operating profit for the nine months to December 2023 rose to a record USD 2,163 million.
The demand for air travel remained strong, particularly in North Asia, with SIA and Scoot carrying 9.5 million passengers, marking a 29.4 per cent increase year-on-year.
While cargo flown revenue decreased by 35.1 per cent, cargo loads increased by 3.9 per cent, driven by year-end demand from the e-commerce sector. Cargo yields, however, remained 32.1 per cent above pre-pandemic levels.
SIA Group is actively pursuing strategic initiatives to bolster its position in the market. This includes the proposed merger of Air India and Vistara, aiming to strengthen SIA’s presence in India.
Despite challenges such as geopolitical tensions and inflationary pressures, the Group remains optimistic about the future. Forward sales are robust, and the Group expects to return to pre-pandemic capacity levels within FY2024/25.
At the dawn of 2024, global passenger traffic is poised to hit 9.7 billion, surpassing pre-pandemic levels for the first time since COVID-19. In 2023, the leading spots among the top 20 markets for total passenger traffic are held by the US, China, India, Spain, and the UK. However, by 2042 and 2052, China takes the lead, followed by the US, India, Indonesia, and Spain.
Future plans and sustainability
SIA Group remains committed to sustainability, with a target of replacing 5 per cent of its total fuel requirements with sustainable aviation fuels by 2030. This aligns with the Group’s goal of reaching net-zero carbon emissions by 2050.As the aviation industry navigates through uncertainties, SIA Group remains focused on agility, revenue growth, and cost discipline. With a portfolio strategy that emphasises flexibility and innovation, the Group is well-positioned to capitalise on emerging opportunities and continue its legacy of excellence in the global aviation sector.
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