Singapore Airlines has announced that it will pay its employees a substantial bonus equal to nearly eight months of their basic salary. This decision follows the airline's report of its highest ever annual profit.
The remarkable financial performance was driven by strong demand for air travel, with the airline's profits reaching US $2 billion in the 2023-2024 financial year.
Singapore Airlines Gives Massive Bonuses After Record Year
(Photo : Jeffry Surianto on Pexels)
Singapore Airlines' employees are set to receive a 32-week bonus, a reward system that has been part of the company's tradition of sharing profits when times are good.
This bonus scheme not only celebrates the company's success but also honors the dedication of its workforce, which played a crucial role throughout the challenging times of the pandemic.
PYOK revealed that this year's profit-sharing bonus is an increase from the previous year, where employees received bonuses totaling nearly 6.65 months of pay, with an additional ex-gratia payment of up to 1.5 months' basic salary.
The increase reflects both the airline's improved financial health and its recognition of employee contributions.
Demand for flights with Singapore Airlines has remained strong over the past year, particularly benefiting from the full reopening of major markets like China, Hong Kong, Japan, and Taiwan.
This surge in passenger traffic, which grew by nearly 27%, has surpassed the airline's capacity expansion of 22.9%.
Despite the positive outlook, Singapore Airlines also acknowledged challenges ahead, including economic uncertainty and increased competition in the Asia-Pacific region. Additionally, ongoing global geopolitical tensions and rising inflation could potentially affect travel demand in the coming year.
Overall, Singapore Airlines continues to navigate these uncertainties while celebrating a historic year of profit, highlighting both its resilience and commitment to rewarding its employees.
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Singapore Airlines Sees Surge in Passengers and Profits
Singapore Airlines Group experienced a surge in air travel demand, particularly from North Asia, during the 2023/24 fiscal year, as borders in China, Hong Kong SAR, Japan, and Taiwan fully reopened.
The group, which includes both Singapore Airlines and Scoot, served 36.4 million passengers, an increase of 37.6% from the previous year. As per Travel and Tour World, this growth led to a record passenger load factor (PLF) with Singapore Airlines at 87.1% and Scoot at an impressive 91.2%.
The group's total revenue rose to $19,013 million, a 7.0% increase, driven by a significant rise in passenger flown revenue, which reached $15,685 million. Despite a decrease in cargo revenue and passenger yields, the company's overall financial health improved.
The total net profit for the year was $2,675 million, marking a 24% increase from the previous year.
Operating expenses climbed by 8.0% to $16,285 million, primarily due to a rise in non-fuel expenditures. However, the group managed a net fuel cost reduction thanks to lower fuel prices, contributing to an operating profit of $2,728 million.
Singapore Airlines is optimistic about continued strong demand into the next fiscal year and remains committed to sustainability initiatives, including the increased use of Sustainable Aviation Fuel (SAF).
The Board of Directors also recommended a generous final dividend of 38 cents per share for the year.
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