According to figures released on 16th May 2023, Singapore Airlines’ financial performance has resulted in a profit at its year end on 31st March 2023. As we know many airlines have been having issues over the past few years due to the pandemic and suffered heavy losses during this time. In the aftermath of the pandemic, when many countries were lifting their restrictions, airlines were forced to restrict their number of flights due to a surge in demand and an inability for airports to cope due to staff shortages. This is because many airlines had cut staff during the pandemic when demand was less and now that they had moved into other fields, time was needed to recruit new staff.
Singapore Airlines’ Financial Performance
Singapore Airlines however took steps to prepare for the lifting of pandemic restrictions and therefore started recruiting earlier so that it would have enough staff present when pandemic restrictions were lifted. As a result disruption in Singapore was less and Singapore Airlines was able to quickly improve customer revenues. It was also able to expand quickly satisfying pent up demand resulting from other airlines reducing their reach. This meant that Singapore Airlines’ financial performance improved quickly after the lifting of restrictions and the airline was also able to expand its reach into new destinations.
As a result of measures taken, Singapore Airlines’ financial performance has increased significantly this year when compared to the previous year. In the 12 months up to 31st March 2023 the company made 2.1633 billion Singapore dollar profit. This compares favourably to the 948.1 million Singapore dollar loss made in the 12 months up to 31st March 2022. The fact that Singapore Airline’s financial performance has improved from a colossal multi-million dollar loss to a multi-billion dollar profit shows that the company has been moving from strength to strength in past year and is well and truly recovering from the pandemic.
Singapore Airlines’ Revenue
In terms of Singapore Airlines’ revenue (total money received), the company has made a total revenue of 17.7748 billion Singapore dollars. This is a significant increase on the previous year when Singapore Airlines’ financial performance resulted in a revenue of 7.6148 billion Singapore dollars. As one can see, there has been an improvement of approximately 2.3 times. This means that Singapore Airlines is attracting much more customers when compared to when pandemic restrictions were still largely in place. Overall profit has improved by approximately 3.28 times. The fact that profit has improved to a greater extent than revenue indicates that the company is getting better at cost control as well which is good news for Singapore Airlines’ financial performance.
In terms of the company’s response to Singapore Airlines’ financial performance, it has been overall very positive stating that the company has made record revenues. In addition it has commented on the steps that Singapore Airlines took to prepare for the lifting of pandemic restrictions in order to benefit from the anticipated post pandemic surge in demand for flights. These steps, it states, had positive effects.
As one can see, Singapore Airlines’ financial performance has moved from strength to strength over the past year resulting in record revenues and higher profits. The steps Singapore Airlines took to prepare from and benefit from the post pandemic surge in demand have clearly paid off. We have to wait to see how this progresses.