Singapore Airline Group Posts Record Quarterly Profits

Singapore Airlines Group has posted its highest quarterly net profit in its history.



July 27, 2023

DALLAS - Singapore Airlines Group (SIA Group), made up of Singapore Airlines (SQ) and low-cost unit Scoot (TR), has reported a net profit of S$734m (US$554.84m) for the three months to June 30, up from the S$370m (US$279.5m) last year. This was the group's highest quarterly net profit in its history.

The combined carriers flew 8.4 million passengers during the quarter, 65.5% higher than the same period in 2022. Passenger load factor also stood at 88.9%, with SQ's at 88.1% and TR's at 91.7%. The group said this was thanks to robust demand for air travel across all routes and markets as international restrictions eased.

However, the SIA Group also noted that cargo demand had continued to weaken, with loads falling by 11%. This was despite an increase in capacity of 12%, mainly via belly-hold capacity. In its official statement, the group said, "Cargo demand is expected to remain soft in the near term due to inflation and weak economic conditions."

Costs for the airlines continued to rise, to S$353m (US$266.6m), up 10.5% year-on-year. Meanwhile, revenue for the quarter rose 14% to S$4.48bn (US$3.3bn).

(9V-OJJ) Fly Scoot B787-9 YSSY SYD. Photo: Austin Lee/Airways.

Looking Ahead

Looking ahead, SIA Group said that it expects travel demand to "remain robust" throughout the forthcoming peak summer season. "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," it added.

With 199 aircraft in its overall fleet, 137 passenger and seven dedicated freighters with SQ and 55 passenger jets with TR, the combined carriers look set to be operating at approximately 90% pre-pandemic capacity by the end of the current financial year in March 2024. It has a further 99 aircraft on its order books.

Featured Image: 9V-SNC, Singapore Airlines Boeing 777-300ER @KJFK. Photo: Michael Rodeback/Airways.