The Singapore Airlines Group announced its financial results for the third quarter ended December 31, 2023, demonstrating resilience and growth amidst a dynamic global environment.
Robust Performance Amidst Demand Surge
The demand for air travel remained robust in the third quarter of FY2023/24, fueled by a rebound in North Asia following the full reopening of China, Hong Kong SAR, Japan, and Taiwan. Singapore Airlines (SIA) and Scoot collectively carried 9.5 million passengers, reflecting a significant year-on-year increase of 29.4%. Passenger traffic grew by 19.1%, outpacing the capacity expansion of 17.9%, resulting in an improved Group passenger load factor (PLF) of 88.2%.
Financial Highlights
Despite challenges, the Group recorded a third-quarter operating profit of $609 million, representing a decrease of $146 million (-19.3%) compared to the previous year. However, the operating profit for the period from April to December 2023 saw a substantial increase, rising by $174 million (+8.7%) year-on-year to a record $2,163 million. The Group’s net profit for the nine months also surged, reaching a record $2,100 million, marking a remarkable increase of $545 million (+35.0%) year-on-year.
Strategic Initiatives
The Group continues to pursue strategic initiatives aimed at strengthening its position in key markets and advancing sustainability goals. The proposed merger of Air India and Vistara remains in progress, pending regulatory approvals. Once completed, this merger will give SIA a 25.1% stake in an expanded Air India Group, enhancing its presence and market reach in India.
Furthermore, SIA and Scoot announced a commitment to replace 5% of their total fuel requirements with sustainable aviation fuels by 2030, underscoring the Group’s dedication to achieving net-zero carbon emissions by 2050.
Outlook and Future Plans
Looking ahead, the demand for air travel is anticipated to remain healthy in the last quarter of FY2023/24 and the first quarter of FY2024/25. The Group remains vigilant amid increased competition, geopolitical tensions, and economic uncertainty. Furthermore, challenges such as high fuel prices, inflation, and supply chain constraints present operational hurdles that require strategic navigation.
The Singapore Airlines Group is poised to navigate these challenges by remaining agile, matching capacity to demand, and capitalizing on revenue and growth opportunities. The Group’s commitment to investing in its network, product offerings, and digital technologies will ensure continued resilience and competitiveness in the evolving aviation landscape.
