SINGAPORE: Singapore Airlines, SIA Group reports net profit of S$658.7 million, climbing by 4.9% year-on-year for the third quarter of the financial year 2023/2024, Singapore Business Review reports.
Despite a dip in operating profit, which fell by 19.3% to $609 million, the airline group managed to boost its bottom line owing to several key factors.
In a filing to the bourse, Singapore Airlines (SIA) noted the rise in net profit to “lower tax expense, the share of profits of associated companies against a loss last year, surplus on disposal of aircraft, spares, and spare engines, and higher net interest income.”
The Straits Times reported that the surge in revenue, which reached S$5.1 billion, was primarily fueled by robust passenger demand, marking a milestone for the airline as quarterly revenue surpassed the S$5 billion mark for the first time in its history.
The positive trend in net profit translated to earnings per share of 16 cents, a notable increase from the previous year’s 10.3 cents. Revenue for the quarter also experienced a 4.9% increase, reaching S$5.1 billion compared to S$4.8 billion in the previous year.
Passenger demand remained strong, with passenger flown revenue climbing by 10.6% to S$4.2 billion despite a slight drop in passenger yields.
For the nine months leading up to Dec 31, 2023, the group’s net profit surged by 35% to hit a record S$2.1 billion, with revenue expanding by 7.4% to reach S$14.2 billion year-on-year.
Singapore Airlines and its subsidiary, Scoot, also experienced a significant uptick in passenger numbers, with 9.5 million passengers flown in the third quarter of the financial year 2024, marking a 29.4% increase from the previous year.
Passenger traffic grew by 19.1%, outpacing capacity injection, resulting in a passenger load factor improvement of 88.2%.
However, cargo flown revenue witnessed a decline of 35.1% to S$559 million, although cargo loads increased by 3.9% due to strong year-end demand from e-commerce.
SIA remains optimistic about air travel demand for the last quarter of the financial year 2024 and the first quarter of the financial year 2025, supported by robust forward sales and increased capacity in various markets.
Despite these positive indicators, the airline group anticipates continued pressure on passenger yields due to heightened competition and external factors such as geopolitical tensions, economic uncertainty, supply chain constraints, high fuel prices, and inflationary pressures.
Looking ahead, Singapore Airlines aims to expand its network by reinstating flights to key destinations and adding more routes to its portfolio.
As of Dec 31, 2023, the group’s operating fleet comprised 202 passenger and freighter aircraft, with plans to expand further with 92 aircraft on order.
Shares of Singapore Airlines closed up 1% at S$7.37 on Feb 20, prior to the announcement. /TISG
Read also: Singapore will require departing flights to use sustainable fuel starting 2026
Featured image by Depositphotos