SIA net profit 4.9% up end of 2023, passenger yields under pressure

Singapore Airlines (SIA) has reported a $659 million net profit for the 2023/2024 fiscal third quarter, ending December 31, 2023. It marks a 4.9% increase from the same period a year prior, when operating profit was down 19.3% to $609 million. Total revenue was up 4.9% to $5.08bn. The demand for air travel for the period was robust and its profit was boosted by a rebound in North Asia with countries such as China and Taiwan fully reopening post-pandemic. SIA and subsidiary Scoot carried 9.5 million passengers, up 29.4% year-on-year (YoY). Passenger traffic grew 19.1%, outpacing the capacity expansion of 17.9% and resulting in its load factor improving by 0.8 percentage points to 88.2%. Passenger flown revenue rose by 10.% to $4.17bn, despite a 7.4% decline in passenger yields. The airline said: ""Passenger yields continue to come under pressure from increased competition as capacity restoration continues across the industry."" It added: ""Heightened geopolitical tensions and economic uncertainty could also weigh on business sentiment and the demand for air travel. High fuel prices and inflationary pressures, as well as supply chain constraints, also present a more challenging operating cost environment globally for airlines."" Cargo flown revenue fell 35.1% to $559 million while cargo loads increased by 3.9% due to a strong year-end demand from the e-commerce segment. Cargo yields were 37.4% lower YoY but 32.1% above a pre-pandemic 2019.