Singapore Airlines posts record profits amid soaring demand

Singapore Airlines A350
Kittikun Yoksap / Shutterstock

Singapore Airlines has posted record half-year profits due to soaring demand for air travel in the Asia-Pacific region.  

The city-state-based carrier announced that net profits rose to SGD 1.44 billion ($1.06 billion) for the six months ending September 30, 2023 (H1). This figure represents an increase of 55.4%, up from SGD 927 million ($684) reported for the same period in 2022. 

The airline’s total revenue jumped 8.9% to SGD 9,162 million ($6,760 million), up from SGD 8,417 million ($6,210 million) in the same period last year.  

As a result of the record profits, the airline has declared an interim dividend of 10 Singapore cents ($0.07) per share.  

The airline also recorded an SGD 413 million ($305 million) decrease in fuel costs for the six-month period. However, looking ahead to H2, it has flagged concerns about a possible spike in fuel costs due to uncertainties surrounding the international fuel market as a result of ongoing global hostilities.  

Announcing its latest set of results, Singapore Airlines said in a statement: “The robust demand for air travel continued into the Northern Summer travel season, led by the rebound in passenger traffic to North Asia with the full reopening of China, Hong Kong SAR, Japan, and Taiwan.” 

Singapore Airlines, along with its budget carrier, Scoot, carried approximately 17.4 million passengers during H1, representing an increase of 52.3% year-on-year. The carrier expects to return to pre-COVID passenger capacity levels within fiscal 2024-2025, it added in its statement. 

As of September 30, 2023, the Singapore Airlines Group (incorporating the mainline carrier, Scoot and Singapore Airlines Cargo) operated a fleet of 202 aircraft. This is made up of 195 passenger aircraft and seven dedicated freighters.  

While Singapore Airlines and its cargo division’s operating fleet comprises 140 passenger aircraft and seven freighters, Scoot operates 55 passenger aircraft. The group also has 96 outstanding aircraft orders. 

Elsewhere in its statement, the company advised that the proposed merger between Air India and its joint venture with India’s Tata Group, Vistara, was on course but remained subject to approval from the relevant regulator. Singapore Airlines is a major shareholder in Vistara, currently owning 49% of the Indian carrier. 

Once the merger is complete, Singapore Airlines will have a 25.1% stake in the combined Air India. Currently, Singapore Airlines owns a 49% shareholding in Vistara, and the remaining 51% stake is with the Tata Group. 

Looking ahead to 2024 

Looking further ahead, the airline is planning an increase in services to various destinations for the northern summer of 2024.  

The carrier will be ramping up services to destinations across its network. This will include restoring Airbus A380 services to Frankfurt (FRA) and deploying its Airbus A350-900 medium-haul fleet to Cairns (CNS) and Male (MLE). It also plans to reinstate direct services between Singapore and Barcelona. 

Highlighting forthcoming route frequencies, the company’s statement said: “Flight frequencies will be increased to reach or exceed pre-pandemic levels across multiple points on our network. These include Ahmedabad (AMD), Beijing (PEK), Shanghai (PVG), Copenhagen (CPH), Da Nang (DAD), Darwin (DRW), Melbourne (MEL), Perth (PER), Dubai (DXB), Tokyo-Haneda (HND), Seattle (SEA) and Houston (HOU).” 

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