Singapore Airlines (SIA) Group has achieved its highest-ever full-year net profit of USD 2.675 billion for the financial year FY2023-24. This milestone reflects robust demand for air travel, which drove record passenger revenue and load factors, despite various industry challenges.
The airline group reported a robust financial performance for the year, with a net profit of USD 2.675 billion, marking a 24 per cent increase. Total revenue stood at USD 19.013 billion, showing a 7 per cent growth from the previous year. Operating profit also saw a rise of 1.3 per cent to reach USD 2.728 billion. Both SIA and Scoot achieved record high passenger load factors. The proposed final dividend of 38 cents per share for FY2023-24 yields 7.5 per cent.
The resurgence in air travel demand, particularly with the reopening of North Asian markets such as China, Hong Kong, Japan, and Taiwan, propelled SIA and Scoot to carry a combined 36.4 million passengers, a 37.6 per cent increase year-on-year. Passenger traffic rose by 26.6 per cent, outpacing the 22.9 per cent increase in capacity, leading to a group passenger load factor improvement of 2.6 percentage points to a record 88 per cent.
While passenger flown revenue saw a significant increase of USD 2.319 billion (+17.3 per cent) to USD 15.685 billion, cargo flown revenue declined by USD 1.485 billion (-41.2 per cent) to USD 2.119 billion due to lower yields despite a slight increase in cargo loads.
Group expenditure rose by USD 1.202 billion (+8.0 per cent) to USD 16.285 billion, with non-fuel expenditure increasing by USD 1.336 billion (+13.5 per cent). However, net fuel cost decreased by USD 132 million (-2.5 per cent), thanks to a reduction in fuel prices despite higher volume uplifted and a lower fuel hedging gain.
For the second half of FY2023/24, SIA Group recorded a revenue increase of USD 492 million (+5.3 per cent) year-on-year to USD 9.850 billion, driven by a USD 749 million (+10.1 per cent) rise in passenger flown revenue. Despite this, cargo revenue fell by USD 446 million (-29.7 per cent) due to declining yields amid recovering bellyhold cargo capacity.
The group’s revenue surged to an all-time high of AED 137.3 billion (USD 37.4 billion), representing a robust 15 per cent growth driven by strong customer demand across its diverse businesses. Ending the year with an impressive cash balance of AED 47.1 billion (USD 12.8 billion), Emirates Group declared a dividend of AED 4.0 billion (USD 1.1 billion) to its owner, the Investment Corporation of Dubai (ICD).
Expenditure grew by USD 776 million (+9.8 per cent) in the second half, with a notable increase in net fuel cost due to higher volume uplifted and lower fuel hedging gains. Consequently, the Group’s operating profit for the second half decreased by USD 284 million (-19.5 per cent) to USD 1.174 million. However, net profit remained stable, increasing slightly by USD 4 million to USD 1.234 billion.
The SIA Group’s strong foundation and strategic initiatives position it well to seize future growth opportunities. The Group has announced a proposed final dividend of 38 cents per share, bringing the total payout for FY2023/24 to 48 cents per share, with a dividend yield of 7.5 per cent.
As of 31 March 2024, the Group’s shareholders’ equity stood at USD 16.3 billion, a decrease of USD 3.5 billion from the previous year, primarily due to the redemption of Mandatory Convertible Bonds (MCBs) and repayment of borrowings. Despite this, the Group maintains robust liquidity with cash and bank balances at USD 11.3 billion and access to USD 2.9 billion in untapped committed credit lines.
