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Singapore Airlines 777-300

Singapore Airlines posts record net profit attributed to strong air travel demand and astute management

Singapore Airlines posts record $2,675 Million full year net profit

Singapore Airlines have posted a record net profit of $2,675 Million for the full year on the back of solid air travel demand resulting in improved passenger load. The airline announced a final dividend of 48 cents per share.

The airline’s revenue rose $1,238 million to a record $19,013 million. Passenger flown revenue rose by $2,319 million to $15,685 million. As a result, Group operating profit reached a record $2,728 million, up $36 million or 1.3% from a year before.

Redemption of Mandatory Convertible Bonds

Singapore Airlines announced on 15 May 2024, the Company announced its intention to redeem all remaining MCBs that were issued in June 2021. The accreted principal amount payable, being 112.61% of the principal amount of the MCBs, will be $1,744.6 million. The redemption amount will be paid
to eligible bondholders on 24 June 2024. With this, the Company would have fully redeemed
the $9.7 billion of MCBs that were issued in 2020 and 2021.

Singapore Airlines A350-900

Future Outlook

Singapore Airlines will increase operations to Barcelona, Beijing, Darwin, Hong Kong SAR, Houston, Kuala Lumpur, Melbourne, Milan, Perth, Rome, Seattle, Shanghai, Taipei-Tokyo (Narita), and Yangon for the Northern Summer 2024 operating season and will begin operations to London
(Gatwick) in June 2024. The airline’s low-cost arm, Scoot began Embraer E190-E2 operations on 7 May 2024 with flights to Krabi. The aircraft will operate to existing destinations such as Hat Yai, Miri, and Kuantan, as well as two new points – Koh Samui (in May 2024) and Sibu (in June 2024). Operating the aircraft on thinner routes to non-metro destinations in the Asia-Pacific allows the Group to unlock significant growth opportunities in the region. Increased competition, geopolitical tensions, and high inflation continues to be a drag and will performance going forward. There will be a downward pressure of yields with strong adjustment in pricing required to maintain growth and market share. Furthermore, the rise of ultra-long haul flying from the airline’s key markets will pose a new challenge.

Singapore Airlines Business Class A380-900
Singapore Airlines Business Class

Strong leadership and brand values

With continuous investment in it’s product, people, and three pillars, network connectivity, product leadership, and service excellence, Singapore Airlines is well placed to navigate the future emerging growth opportunities and mitigate uncertainties.

Premium Economy cuisine on board Singapore Airlines
Cuisine on board Singapore Airlines Premium Economy

Its well placed with the advantage of leveraging its leading airline brands in Asia and provide flexibility and greater variety to travellers. Once the Air India and Vistara merger is completed, it will give Singapore Airlines a 25.1% stake in an enlarged Air India Group with a significant presence in all key Indian airline market segments feeding into its longer term multi-hub strategy. Singapore Airlines continues to invest in enhancing the end-to-end customer experience. A new SilverKris Lounge at Perth International Airport was opened in February 2024, and plans are underway to progressively upgrade other lounges in airline’s network. It also unveiled comprehensive revamp of its Premium Economy Class in-flight experience. In May 2024, the airline signed an agreement with Neste to purchase 1,000 tonnes of neat SAF, which will be the first batch to be produced in Neste’s Singapore refinery for delivery to Singapore Changi Airport, feeding into its sustainability goals to achieve net zero carbon emissions by 2050.

Singapore Airlines

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