Singapore Airlines’ financial performance has resulted in a profit at the end of the company’s financial year. In the 12 months up to 31st March 2024, the company made a profit of 2.675 billion Singapore dollars. This is a record for the company and is also a 24% improvement on the previous year’s profit which was 2.157 billion Singapore dollars, This is good news for the company which has been growing from strength to strength.
Singapore Airlines’ Progress
During the pandemic when governments around the world imposed flight restrictions, Singapore Airlines’ financial performance suffered along with that of many other airlines. In addition, when government restrictions were lifted many airlines continued to suffer as there was a surge in demand for flights which airports and airlines could not cope due to staff shortages. This is because many had been laid off during the pandemic when demand was less. Singapore Airlines however bucked the trend because it detected that this could happen and therefore prepared by re-recruiting before government restrictions were lifted. This meant that the airline was able to expand into voids left by other airlines resulting in Singapore Airlines’ financial performance growing faster than many others.
In terms of Singapore Airlines’ revenue there was a 7% growth in year-end 2023-24 when compared to the previous year. In the 12 months up to 31st March 2024, Singapore Airlines’ financial performance resulted in a revenue of 19.013 billion Singapore dollars. This compares to a revenue of 17.775 billion Singapore dollars in the previous year. The fact that revenue has improved indicates that Singapore Airlines continues to grow in popularity. The fact that revenue has improved but profit has grown even more indicates that Singapore Airlines’ cost control has also improved.
In areas other than Singapore Airlines’ financial performance it does appear that The airline has had a serious incident in May where extreme turbulence in a flight from London to Singapore resulted in the death of one passenger and the injury of several others. Many who suffered injuries had severe wounds on the heads as the turbulence resulted in people banging their heads on cabin lights at such force that even some of the ceiling panels were broken. The plane had to be diverted to Bangkok for the injured to be treated in hospital. The passenger who died was a 76 year old British man who had a heart attack. This incident may bode difficult times for the airline.
Mergers
On a more positive note, the Competition and Consumer Commission of Singapore has approved the merger of Air India with the airline Vistara which was previously co-founded by Singapore Airlines and TATA Sons. This will give Singapore airlines a 25.1% share in the enlarged Air India group which gives the company greater access to a growing Indian aviation market. In addition to this, Singapore Airlines has also had a strong pick up in the number of bookings for flights to North and South East Asia which bodes well for the first quarter results for the 2024-25 financial year.
As one can see, Singapore Airlines financial performance is continuing to improve and in addition the airline is also expanding its reach. It has had setbacks such as the serious incident in May resulting in one death and several severe head injuries. We have to wait to see how this progresses.
