Singapore Airlines reports strong performance and increased profits for Q3 2023/24 – AeroTime

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Singapore Airlines Group announced net profit of S$659 million ($491 million) for the third quarter of 2024 (Q3) ending December 31, 2023. Profits were up from S$628 million ($468 million) in the same period in 2022 and were up 4.9% year-on-year.

The airline’s profit increase was due to “solid passenger demand driven by recovery in North Asian markets as China, Hong Kong, Japan and Taiwan resume operations,” the group said in its third quarter results report. . The net profit figure translated to earnings per share (EPS) of S$0.16 ($0.12) for the third quarter of 2024, up from S$0.103 ($0.07) year-on-year.

Revenue for Q3 2024 also increased by 4.9% to S$5.1 billion ($3.8 billion) from S$4.8 billion ($3.6 billion) in Q3 2023. The airline said the figure was the first in the group’s history to exceed quarterly revenue of S$5 billion ($3.73 billion). The revenue increase was driven by strong passenger demand, with passenger aviation revenue increasing 10.6% to S$4.2 billion ($3.13 billion) despite a 7.4% decline in passenger yield.

Singapore’s national carrier said demand for air travel is likely to remain healthy from the last quarter of the 2024 financial year to the first quarter of 2025.

“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 airline said in a statement. mentioned in.

“Nonetheless, passenger yields remain under pressure from increased competition as capacity recovery continues across the industry,” the company warned. “Rising geopolitical tensions and economic uncertainty could also weigh on business confidence and aviation demand. Rising fuel prices, inflationary pressures and supply chain constraints are also likely to weigh on airlines globally. Air cargo traffic is expected to soften during the seasonally weak January-March period, and yields will suffer as passenger aircraft belly-hold capacity continues to expand. The pressure continues to be on.”

As of December 31, 2023, Singapore Airlines Group’s operating fleet consisted of 202 passenger and cargo aircraft, with an average age of 7 years and 1 month. Singapore Airlines added three Boeing 787-10s in the third quarter, bringing its fleet to 143 passenger planes and seven cargo planes. Meanwhile, low-cost sister airline Scoot operates a fleet of 52 passenger aircraft and is scheduled to receive its first Embraer E190-E2 aircraft in April 2024. Singapore Airlines Group has also ordered 92 aircraft.

For the 2024 Northern Summer flight season (31 March to 26 October 2024), Singapore Airlines will increase its flights to Fukuoka (FUK) and Nagoya (NGO) from five times a week to daily. . The airline will also operate direct flights to Milan (LIN) four times a week, up from its current twice-weekly operation, and will add direct flights between Singapore (SIN) and London Gatwick Airport (LGW) in June 2024. The airline plans to operate five flights a week. , regulatory approval required.

The group expects to return to pre-pandemic capacity levels within the 2024/25 financial year, which begins on 1 April 2024.