The airline said short-term demand for flights remained strong as strong travel appetite drove record full-year profit that beat even estimates despite a rather weaker fourth quarter.
The city’s flag carrier also highlighted strong cargo demand towards the tip of the financial 12 months as various shippers shift to air transport resulting from security concerns within the Red Sea region.
“Cargo demand increased towards the end of the 2023/24 financial year on the back of healthy e-commerce demand and resilient and growing segments such as perishables and concerts,” the corporate said on Wednesday.
The carrier reported an annual net profit of A$2.68 billion ($1.99 billion) for the financial 12 months ended March 2024, up from A$2.16 billion a 12 months ago.
It also declared a final dividend of 38 Singapore cents apiece, up from 28 Singapore cents a 12 months ago.
This windfall for Singapore Airlines staff mirrors the experience of Emirates employees, which is reported to be giving employees a five-month bonus after achieving a record annual profit of $5.1 billion. Last 12 months, Gulf carrier also paid an identical amount.
However, Singapore Airlines expects passenger earnings – a measure of the common per-mile fare per passenger – to proceed to say no as airlines expand capability, particularly within the Asia-Pacific region.
“The aviation 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,” it said.
Singapore Airlines has benefited from a faster reopening and rebuilding in comparison with many other airlines after Covid-19 restrictions were lifted. Monthly passenger numbers in March were around 97 percent of pre-pandemic levels.
However, CEO Goh said demand for air travel from China for Singapore Airlines has not returned to pre-pandemic levels, although visa-free travel for Chinese nationals to the Asian hub has helped fill seats and the airline will expand greater capability in China this 12 months.
“Travel to China is big, travel from China will not be fully back to normal yet,” he said on Thursday.
He said visa-free travel between China and Singapore, which began in February, had provided “some increase in load factor” for Chinese flights.
Goh added that the airline group has steadily restored capability in China and can add seats to Shanghai, Beijing and Guangzhou this 12 months.
The flag carrier suspended April flights to Chengdu, Chongqing and Xiamen, citing a scarcity of regulatory approvals. These have already been put in place and flights will run until July, when permits will must be obtained again, Goh said.
Singapore Airlines said it intends to redeem all remaining zero-coupon compulsory convertible bonds (MCBs) it issued in June 2021 to shore up its balance sheet amid the near-total cessation of air travel in the course of the pandemic.
The latest redemption, to be paid to eligible bondholders on June 24, will see the corporate meet its accrued principal amount payable of A$1.74 billion.
Additional reporting by Reuters
