Singapore Airlines Group reports record quarterly profit as demand surges

The Singapore Airlines Group achieved a record quarter profit amid robust demand for air travel through the mid-year school holidays and the start of the summer travel season.

SIA Group posted a net profit of $734 million in the first three months of the 2023-34 financial year against $370 million in the same period last year.

Passenger capacity expanded by more than 32% year-on-year as Covid restrictions on international air travel eased globally. 

More: Start of summer boosts Singapore Airlines carryings [July 18th]

Singapore Airlines Group March capacity almost 80% of pre-Covid level [April 25th]

SIA and low-cost offshoot Scoot carried 8.4 million passengers during the quarter, a year-on-year rise of 65.5%.

The group achieved a record quarterly passenger load factor of 88.9%, with SIA at a record 88.1% and Scoot at 91.7%.

Group revenue rose $551 million year-on-year to $4.5 billion, with higher passenger flown revenue of $1 billion, partially offset by a $555 million decline in cargo revenue.

SIA said: “The demand for air travel is expected to remain robust for all route regions through the summer peak, with forward passenger bookings closely tracking capacity injection across most markets over the next three months.

“The SIA Group is well positioned in this operating environment, even as competition is expected to intensify in the coming months as more capacity is injected into international routes. The group will monitor these trends closely, and adjust its capacity and network accordingly.”

However, the company cautioned: “Macroeconomic and geopolitical uncertainties, as well as inflation, could pose challenges for the airline industry.

“The strength of the group’s portfolio and multi-hub strategies, as well as its successful transformation programmes, have put it in a strong position to navigate these challenges and benefit from future opportunities.”

Work continues on the proposed merger of Air India and Vistara, which will result in SIA taking a 25.1% stake in the enlarged Air India Group when the deal has been completed. 

“This will bolster the group’s presence in India, strengthen its multi-hub strategy, and allow it to continue participating directly in this large and fast-growing aviation market,” SIA added.

More: Start of summer boosts Singapore Airlines carryings [July 18th]

Singapore Airlines Group March capacity almost 80% of pre-Covid level [April 25th]