SIA to reward staff with 8 months salary bonus as net profit soars 24% YoY

SINGAPORE: Singapore Airlines (SIA) will reward staff with eight months salary bonus as it has achieved its second consecutive year of record-breaking annual profit.

The bonus payout exceeds the airline’s previous year’s earnings peak, which saw employees receiving a profit-sharing bonus equal to 6.65 months’ pay, alongside a maximum of 1.5 months’ salary as an ex-gratia bonus related to the pandemic.

In the fiscal year 2023-2024, Singapore Airlines reported a record annual profit of S$2.67 billion, marking a 24% increase compared to the previous year, according to an exchange filing on Wednesday.

Despite facing competitive pressures, higher costs, geopolitical tensions, and economic uncertainties, the airline reported sustained demand for flights in the near term. This resilience was driven by a robust appetite for travel and a thriving cargo sector.

The airline’s success can be attributed to its swift adaptation and recovery efforts following the easing of Covid restrictions. In March, monthly passenger volumes reached approximately 97% of pre-pandemic levels, indicating a remarkable rebound compared to its industry peers.

In addition, Singapore Airlines has proposed a final dividend of S$0.38 per share, buoyed by an increased net profit, according to SBR. This proposed dividend, when combined with the interim dividend of S$0.10 per share disbursed on December 22, 2023, would result in a total dividend payout of S$0.48 per share for the fiscal year 2023/24.

The airline stated, “Subject to shareholder approval at the Annual General Meeting on 29 July 2024, the final tax-exempt, one-tier dividend would be paid on August 21, 2024 for shareholders as of August 2, 2024.”

Singapore Airlines’ bonus payout aligns with a similar trend observed at Emirates. Reportedly, Emirates is set to reward its employees with a bonus equivalent to five months’ salary, following its record annual profit of US$5.1 billion (approx. S$6.86 billion). This is a similar amount to last year’s bonus payout. /TISG

Read also: Singapore Airlines adds 175 new food menu items plus amenity kits for premium economy class

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