A strong rebound in travel demand to North Asia helped Singapore Airlines Group achieve record full-year profits, even as the airline group flags an easing of passenger yields in Asia-Pacific. 

For the year ended 31 March, the group – comprising mainline operator SIA and low-cost unit Scoot – improved its profitability. While the group’s operating profit inched up 1% to around S$2.7 billion ($2 billion), net profit climbed 24% to reach S$2.68 billion. 

A350-900 Singapore

Source: AirTeamImages

Singapore Airlines Group reported record full-year profits.

Full-year revenue increased 7% year on year to S$19 billion, led by a 17% increase in passenger travel revenue to a new high of S$15.7 billion. 

The group’s airlines carried 38% more passengers to 36.4 million. Group traffic rose 27%, outpacing a 23% increase in capacity, resulting in a 2.6 percentage point rise in passenger load factors to a record 88%.

SIA Group states: “The demand for air travel remained buoyant throughout [the fiscal year], boosted by a rebound in North Asia as China, Hong Kong…Japan, and Taiwan fully reopened their borders.” 

Group expenses were 8% higher at S$16.3 billion, with non-fuel costs increasing 13.5%. This was offset by a 2.5% drop in net fuel costs, despite higher volumes uplifted, amid a decrease in oil prices. 

The group ended the year with 200 aircraft in service, with SIA operating 142 passenger jets and seven freighters, and Scoot with 51 aircraft.

SIA Group notes that while demand remains “healthy” in the April-June quarter, passenger yields “will likely continue to moderate due to increase capacity injection by airlines, especially in the Asia-Pacific region”. 

“The airline industry continues to face challenges including rising geopolitical tensions, an uncertain macroeconomic climate, supply chain constraints, and high inflation in many parts of the world,” it adds. 

Still, SIA Group remains confident that it is “well-positioned to seize emerging growth opportunities and navigate uncertainties”, pointing to its “strong foundations”.