Singapore Airlines posts record net profit for FY24; higher dividend and big, fat staff bonus on the way

Singapore Airlines (SIA) staff members are reportedly set to get a bonus equivalent to nearly 8 months’ salary, following the SIA Group’s record net profit of SGD 2.67 billion for the financial year 2023-24 (FY24).

Singapore Airlines staff
Singapore Airlines staff are set to get a bumper bonus. Image courtesy: Instagram/singaporeair

Total revenue during the year was SGD 19 billion; total expenditure SGD 16.29 billion; and operating profit SGD 2.73 billion.

While SIA issued a media release on the business figures, news of the bonus was reported by The Straits Times, citing a screenshot shared by a source. The screenshot was of a message from SIA Chief Executive Goh Choon Phong.

ST reported that the bonus pay for 2024 was worth 7.94 months’ salary for all the staff, including pilots, and that most SIA employees had received 6.65 months’ bonus pay in 2023 “for their hard work” during the tough phase of the pandemic. “SIA declined to comment on the matter,” reported the Singapore-based news outlet.

Also read: Emirates Group’s record profit for FY24 translates to 5-month bonus pay for employees in May

According to the media release issued by the SIA Group — it has the flagship carrier Singapore Airlines and the budget carrier Scoot — the “demand for air travel remained buoyant” throughout the financial year, following the complete reopening of borders by the countries and territories in North Asia, which are: China, Hong Kong SAR, Japan, and Taiwan.

Scoot staff
Staff members of Scoot, the budget carrier of the SIA Group. Photo courtesy: Instagram/flyscoot

Eye on the Indian market

SIA said in its business results: “The proposed merger of Air India and Vistara was approved by the Competition and Consumer Commission of Singapore on 5 March 2024. It is pending foreign direct investment and other regulatory approvals.

“Once completed, it will give SIA a 25.1 per cent stake in an enlarged Air India Group, with a significant presence in all key Indian airline market segments, including domestic, international, full-service, and low-cost. This will strengthen SIA’s multi-hub strategy, and allow the Group to continue participating directly in this large and fast-growing aviation market.”

SIA Group numbers for FY24

  • The media release said: “SIA and Scoot carried a combined 36.4 million passengers, up 37.6 per cent year-on-year. Passenger traffic grew 26.6 per cent, outpacing the capacity expansion of 22.9 per cent. As a result, the Group passenger load factor (PLF) improved 2.6 percentage points to a record 88 per cent. SIA and Scoot registered record PLFs of 87.1 per cent and 91.2 per cent respectively.”
  • This year-long demand has translated to the “highest full-year operating and net profits in the Group’s history”. For shareholders, this means great news: “Proposed final dividend of 38 cents per share results in a total payout of 48 cents per share for FY2023/24, or a dividend yield of 7.5 per cent.”
  • Taking into account the increase in non-fuel cost, but the decrease in net fuel cost, and various other factors, the SIA Group’s “operating profit reached a record SGD 2,728 million, up SGD 36 million or 1.3 per cent from a year before”.
  • According to the release: “The Group’s net profit improved by SGD 518 million (+24 per cent) to SGD 2,675 million. This was mainly due to the better operating performance (+SGD 36 million), a net interest income versus net finance charges a year before (+SGD 215 million), lower tax expense (+SGD 132 million), and a share of profits versus a share of losses of associated companies from the previous year (+SGD 104 million).”
  • About the dividend calculation, the release said: “The Board of Directors recommends a final dividend of 38 cents per share for FY2023-24. Including the interim dividend of 10 cents per share paid on 22 December 2023, the total dividend for FY2023-24 will be 48 cents per share. Subject to shareholder approval at the Annual General Meeting on 29 July 2024, the final dividend (tax exempt, one-tier) would be paid on 21 August 2024 for shareholders as of 2 August 2024.”