The Singapore Airlines (SIA) Group has reported its highest-ever full-year operating and net profits, driven by robust demand for air travel and record passenger revenue and load factors. However, the company cautioned that geopolitical tensions, macroeconomic uncertainties, inflationary pressures, and supply chain constraints pose challenges for the aviation industry.
For the financial year ended 31 March 2024, the SIA Group’s net profit improved by 24% to $2.67 billion, while operating profit reached a record $2.73 billion, up 1.3% from the previous year. Group revenue rose 7% to a record $19.01 billion, with passenger flown revenue increasing by 17.3% to $15.69 billion, despite a 7.6% decline in passenger yields.
SIA and Scoot carried a combined 36.4 million passengers, up 37.6% year-on-year, with passenger traffic growing 26.6%, outpacing the capacity expansion of 22.9%. As a result, the Group passenger load factor improved 2.6 percentage points to a record 88%.
The Board of Directors has recommended a final dividend of 38 cents per share, bringing the total dividend for FY2023/24 to 48 cents per share, representing a dividend yield of 7.5%.
Looking ahead, the SIA Group expects healthy demand for air travel in the first quarter of FY2024/25, supported by strong forward bookings to North Asia and Southeast Asia. However, passenger yields are likely to moderate due to increased capacity injection by airlines, particularly in the Asia-Pacific region.
The Group remains committed to its long-term strategic initiatives, including developing its people, investing in digital capabilities, and enhancing network connectivity, product leadership, and service excellence. The proposed merger of Air India and Vistara is expected to strengthen SIA’s multi-hub strategy and allow the Group to continue participating directly in the large and fast-growing Indian aviation market.
SIA also continues to invest in sustainability, setting a target to fulfil 5% of its total fuel requirements with Sustainable Aviation Fuel by 2030, as part of its long-term goal of achieving net-zero carbon emissions by 2050.
The SIA Group expressed gratitude for the strong support from customers, shareholders, partners, and staff, as it navigates the challenges and opportunities in the aviation industry.
