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SIA Group posts highest net profit in its 76-year history

Group operating profit came in at a record $2,692 million, reversing the $610 million loss in FY2021/22. Operating profit for SIA was a record $2,601 million, an increase of $2,713 million from the previous financial year.

According to the Singapore Airlines (SIA) Group, Group passenger capacity reached 79% of pre-Covid levels in March 2023, higher than the 58% level for international scheduled services of Asia-Pacific airlines. SIA and Scoot collectively carried 26.5 million passengers, up six-times from a year before. The passenger load factor (PLF) jumped 55.3 percentage points to 85.4%, the highest in the Group’s history. SIA achieved a record PLF of 85.8%, while Scoot delivered a PLF of 83.9%. Group revenue for the financial Year FY2022/23 increased by $10,160 million (+133.4%) year-on-year to a record $17,775 million. Passenger flown revenue rose $10,560 million (+376.3%) to $13,366 million as traffic grew 449.9%, outpacing the capacity expansion of 94.0%.

Group operating profit came in at a record $2,692 million, reversing the $610 million loss in FY2021/22. Operating profit for SIA was a record $2,601 million, an increase of $2,713 million from the previous financial year. Scoot achieved a record operating profit of $148 million, up $602 million from FY2021/22.

The Group posted a record net profit of $2,157 million for the year, versus a $962 million net loss in the previous year (+$3,119 million). This was mainly driven by better operating performance (+$3,302 million) and lower net finance charges (+$338 million), and partially offset by a tax expense versus a tax credit last year (-$615 million).

“The SIA Group’s record financial performance for FY2022/23 is a testament to its proactive strategic initiatives, pre-emptive preparation that was made when borders remained closed, and the hard work, dedication, and sacrifices of its employees. The SIA Group’s robust financial position, its commitment to offer customers best-in-class products and services, as well as its enhanced agility and resilience emerging from the Covid-19 pandemic, will allow it to retain its leadership position in the industry” mentions Takis Dimitriou, Head of Asian Aviation, GSA of Singapore Airlines and Scoot for Greece and Cyprus.

Geopolitical and macroeconomic uncertainties, as well as high cost inflation, could pose challenges for the airline industry in the months ahead. Even though fuel prices have moderated in recent months, they remain at elevated levels. As competition is expected to increase with more capacity being injected on international routes, the Group will monitor developments closely, and be agile and nimble in its response.

To prepare for the future, several strategic initiatives were undertaken, including the continued expansion of its network through deeper collaboration with like-minded airlines, the proposed merger of Air India and Vistara to bolster SIA’s presence in the fast-growing Indian aviation market, as well as Scoot’s decision to lease nine Embraer E190-E2 aircraft and expand its footprint to secondary points in the region.

In addition, despite the pandemic, the Group remained committed to its longstanding strategy of buying and operating new generation aircraft. This enables it to drive further operating efficiencies and support ongoing efforts to materially lower carbon emissions.

The Group also continued investing in industry-leading products and services to strengthen its premium branding. This included the retrofit of its Airbus A380 and Boeing 737-8 aircraft, the revamp of its flagship lounges at Singapore Changi Airport Terminal 3, and an order for the all-new Airbus A350F freighters.

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