Singapore Airlines Group (SIA Group) achieved record quarterly profits in the last three months of 2023 as demand from passengers remained “robust”.
The Asian airline posted total revenue of S$5.1 billion in the third quarter from October to December, up 4.9% from the same quarter in 2022. Net profit for the quarter also increased by the same percentage to S$659 million.
Singapore Airlines is benefiting from increased passenger numbers in the region as major markets in Asia, including China, Hong Kong and Japan, reopen in early 2023.
The airline restarted routes to Chongqing and Xiamen in China at the end of 2023, bringing the number of destinations within China back to 23 from 25 before the coronavirus.
The group also plans to enhance services from Singapore to the Japanese cities of Fukuoka and Nagoya during the summer 2024 schedule.
Singapore Airlines’ flights to Milan will increase from twice a week to four times a week, direct flights between London Gatwick and Singapore will begin in June, and European flight capacity will increase this summer. is.
SIA Group issued a financial update saying travel demand “remains healthy” and expects to return to pre-pandemic capacity levels within the next financial year starting in April 2024.
“Forward sales remain strong as capacity increases in most markets, supported by leisure travel demand through the school holidays and Easter peak in March and April 2024,” the company said in a statement. .
“Nonetheless, passenger yields remain under pressure from increased competition as capacity recovery continues across the industry.
“Rising geopolitical tensions and economic uncertainty could also weigh on business confidence and aviation demand. Rising fuel prices, inflationary pressures, and supply chain constraints also pose a challenge for airlines around the world. resulting in a more challenging operating cost environment.”