SIA posts record net profit for FY2024; staff to get 8 months’ bonus

Revenue at the national carrier rose 7 per cent to a record $19 billion. PHOTO: ST FILE

SINGAPORE – Singapore Airlines (SIA) posted a record full-year net profit on May 15 and is proposing a higher dividend payout for shareholders and a fatter bonus for staff.

Sources sent The Straits Times a screenshot of SIA chief executive Goh Choon Phong announcing the profit-sharing bonus of 7.94 months for staff, including its pilots. This compares with the bonus of 6.65 months that most employees received in 2023, with some getting an extra 1.5 months for their hard work during the Covid-19 pandemic, they said. SIA declined to comment on the matter.

Earnings at the national carrier rose 24 per cent to $2.7 billion for the 12 months to March 31, 2024, thanks in part to a better operating performance, lower tax expenses and a share of profits from associates. Revenue rose 7 per cent to a record $19 billion. Turnover from passengers flown rose 17.3 per cent to $15.7 billion, despite a 7.6 per cent fall in passenger yields.

Sales from cargo fell around 40 per cent to $2.1 billion. SIA said that while loads increased 1.7 per cent due to the strong demand from the e-commerce segment, yields were 42.2 per cent lower than a year earlier but almost 30 per cent above pre-pandemic levels.

Expenditure rose 8 per cent to $16.3 billion. Non-fuel outlays increased 13.5 per cent, while net fuel costs fell 2.5 per cent.

SIA said demand for air travel remained buoyant throughout the year, boosted by a rebound in North Asia as China, Hong Kong, Japan and Taiwan fully reopened their borders.

SIA and its low-cost carrier Scoot carried 36.4 million passengers, up 37.6 per cent on a year earlier. 

Passenger loads improved 2.6 percentage points to a record 88 per cent, with SIA registering a new high of 87.1 per cent, while Scoot was at 91.2 per cent.

SIA expects air travel demand to remain healthy in the June quarter, underpinned by a strong pickup in forward bookings to North Asia and South-east Asia.

Passenger yields will likely continue to moderate, due to airlines increasing capacity, especially in the Asia-Pacific. 

SIA said cargo demand strengthened towards the end of the financial year, partly due to e-commerce shipments, growing segments such as perishables and concerts, and a shift to air freight by some shippers because of security concerns in the Red Sea region.

It warned that while cargo yields have held above pre-pandemic levels, there continues to be downward pressure as industry capacity has increased.

“The airline industry continues to face challenges, including rising geopolitical tensions, an uncertain macroeconomic climate, supply chain constraints and high inflation in many parts of the world,” SIA said.

The firm has recommended a final dividend of 38 cents a share, to bring the total payout to 48 cents a share following an interim dividend of 10 cents a share on Dec 22, 2023. SIA paid out 38 cents a share in the year ending March 31, 2023.

The final dividend will be paid on Aug 21, 2024, subject to shareholder approval.

SIA shares closed down 0.44 per cent at $6.81 on May 15 before the results were announced.

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