Singapore Airlines returns to profit as cargo dips


SIA Group is set to distribute dividends to stakeholders as the airline and aviation company posted its highest net profit in its 76-year history.

Strong passenger demand from the start of April 2022 when Singapore fully opened its borders resulted in record revenue, operating profit and passenger load factor for the group in FY 2022/2023.

The group posted a record net profit of S$2.157 billion for the year, versus the S$962 million net loss recorded in the previous year. SIA and Scoot combined carried 26.5 million passengers, up six-times from a year before. The group’s passenger load factor jumped 55.3 percentage points to 85.4 percent, the highest in its history. SIA said capacity was back at 79 percent of pre-Covid levels in March 2023, end of the fiscal year. This was higher than the 58 percent seen for international scheduled services of Asia-Pacific airlines.
Meanwhile, the cargo segment’s performance moderated year-on-year as demand declined, and as supply chain disruptions subsided. Cargo yields also fell year-on-year as bellyhold capacity increased with the progressive restoration of passenger flights. The cargo division posted revenue of S$3.604 billion, down 16.9 percent year on year, no thanks to lower loads and yields which slid 11.4 percent and 6.2 percent respectively. Despite this, cargo revenue remained 83 percent above the pre-Covid level recorded in FY 2019, the ‘second highest’ annual cargo revenue figure in the group’s history, SIA noted.

“Near-term cargo demand is expected to remain soft as the industry navigates headwinds from the macroeconomic environment, and as inventory levels recalibrate to post-Covid conditions.

Inflation and weak economic conditions will impact consumer demand and trade. Increased bellyhold capacity amid softer demand continues to exert downward pressure on cargo yields, particularly on key trade lanes,” SIA noted.

The company’s board of directors has proposed a final dividend of 28 cents per share.