Singapore Airlines Group has announced a net profit of SGD659 million ($491 million) for the third quarter (Q3) of 2024 which ended on December 31, 2023. Profits rose from SGD628 million ($468 million) during the corresponding period in 2022, representing a 4.9% year-on-year increase.
The increase in the airline’s profits is being put down to “robust passenger demand, led by a rebound in North Asian markets as China, Hong Kong, Japan, and Taiwan reopened,” said the group in its Q3 business update. The net profit figure translates to earnings per share (EPS) of SGD0.16 ($0.12) in Q3 FY2024, up from SGD0.103 ($0.07) year on year.
Revenue for the Q3 2024 period also increased by 4.9%, rising from SGD4.8 billion ($3.6 billion) in Q3 2023 to SGD5.1 billion ($3.8 billion). This figure surpasses the SGD5 billion ($3.73 billion) mark in quarterly revenue for the first time in the group’s history, according to the airline. The revenue gain was due to high passenger demand, as passenger flown revenue climbed 10.6% to SGD4.2 billion ($3.13 billion) despite a 7.4% drop in passenger yields.
Singapore’s national carrier said that the demand for air travel is likely to remain healthy for the last quarter of the financial year 2024 and into Q1 of 2025.
“Forward sales continue to be robust, in line with capacity increases in most markets, supported by the demand for leisure travel through the school holidays and Easter peak in March and April 2024,” said the carrier in a statement.
“Nonetheless, passenger yields continue to come under pressure from increased competition as capacity restoration continues across the industry,” warned the airline. “Heightened geopolitical tensions and economic uncertainty could also weigh on business sentiment and the demand for air travel. High fuel prices and inflationary pressures, as well as supply chain constraints, also present a more challenging operating cost environment globally for airlines. Air freight volume is expected to soften in the seasonally weaker January to March quarter, with continued pressure on yields as passenger aircraft belly hold capacity continues to grow.”
As of December 31, 2023, the Singapore Airline Group’s operating fleet comprised 202 passenger and freighter aircraft with an average age of seven years and one month. Singapore Airlines added three Boeing 787-10s to its fleet in Q3, bringing its operating fleet to 143 passenger aircraft and seven freighters. Meanwhile, budget sister airline Scoot operated 52 passenger aircraft and will take delivery of its first Embraer E190-E2 aircraft in April 2024. The Singapore Airlines Group also has 92 aircraft on order.
For the Northern summer 2024 operating season (March 31 to October 26, 2024), Singapore Airlines will ramp up services to Fukuoka (FUK) and Nagoya (NGO) from five times weekly to daily. The carrier will also serve Milan (LIN) with four-times weekly direct flights instead of the current twice-weekly operations and will additionally launch five-times weekly direct flights between Singapore (SIN) and London-Gatwick Airport (LGW) in June 2024, subject to regulatory approvals.
The group expects to return to pre-pandemic capacity levels within its 2024/25 financial year which begins on April 1, 2024.