Singapore Airlines’ financial performance continues to remain in the profit zone in the first quarter of 2023. The airline has been moving from strength to strength in recent times. However, the situation has not been easy. As we know many airlines have suffered in recent times due to the pandemic. During this time governments in countries around the world imposed restrictions on international travel. As a result of this, demand for flights greatly reduced severely impacting on airlines’ finances.
To make matters worse, when restrictions were lifted, there was a surge in demand for flights. However, airlines were ill prepared for this as many staff had been laid off during the pandemic when demand was less. Because of this, there were staff shortages leading to mass congestion at airports as well as ensuing flight delays and cancellations. Singapore Airlines was however the exception in this situation. The airline, having anticipated that there would be an issue once restrictions were lifted, took a proactive stance in recruiting more staff early on so that it was well prepared for the surge in demand. As a result, Singapore Airlines’ financial performance improved quickly after pandemic restrictions were lifted. In addition, the airline was able to fill gaps left other airlines, thereby increasing its reach.
Singapore Airlines’ Financial Performance
The dramatic improvement in Singapore Airlines’ financial performance shown at the company’s year-end in March 2023, has continued in the first quarter of this financial year (the accounting period which a business uses to prepare its accounts which in the case of Singapore Airlines extends from 1 April 2023 to 31st March 2024). In the three months leading up to 30th June 2023, the company made a profit of 734 million Singapore dollars. This is 98.4% improvement (almost double) in profit made when compared to the 370 million Singapore dollars made in the three months up to 30th June 2022. This is a significant improvement in profit and shows that Singapore Airlines’ financial performance is continuing on an upward trajectory.
In terms of Singapore Airlines’ Revenue (total money received), the company made a figure of 4.479 billion Singapore dollars in the three months up to 30th June 2023. This is a 14% improvement on the 3.928 billion Singapore dollars made in the three months up to 30th June 2022. The fact that Singapore Airlines’ revenue has improved shows that the company is attracting more customers. However, even though this improvement is still significant, profit has improved to a greater extent by almost doubling. This shows that in addition to gaining more customers, Singapore Airlines’ financial performance has also improved due to a greater ability to control costs.
The Company’s Response
The Company’s response to Singapore Airlines’ financial performance is generally optimistic. The latest report discusses how the airline has seen continued travel demand and robust growth in future bookings. The only downside has been the fact that there has been a reduction in freight travel which appears to be experiencing year on year declines. However, passenger load factors (the proportion of seats on any flight taken up by sitting passengers) are at record levels. The airline continues to expand its network to countries including places in China as well as cities in India such as Chennai.
As one can see the mood on Singapore Airlines’ financial performance is overall positive. The airline is continuing to grow in terms of its revenue and profit. Singapore Airlines is also managing to fill a greater proportion of its seats on any flight and is continuing to expand its network. We have to wait to see how this progresses.