Singapore Airlines Group (SIA Group) reported its highest ever quarterly operating profit and a record nine-month operating and net profit as travel demand continues to soar across its network. Additionally, the airline also reported a record high passenger load factor and witnessed a strong momentum in forward passenger sales for the fourth quarter.
For the third quarter (Q3) of FY22-23, the SIA Group's total revenue increased by 8.0% to $3.62 billion compared to $3.35 billion in the previous quarter. The airline reported a dip in the total expenditure by 7.4% to $3.05 billion from $2.84 billion in the preceding quarter.
Operating profit for the third quarter increased by 11.4% to $563 million from $506 million, and the net profit increased by 12.7% to $509 million from $563 million as compared to the second quarter of the year.
Over the nine months of FY 2022-23, the Group’s total revenue increased by 157.9% to $10 billion from $3.8 billion in same time last year, while the total expenditure also increased by 98.3% to $8.4 billion from $4.2 billion.
The Group’s operating profit increased to $1.5 bn from a loss of $405 million in the first nine months of FY2021-22. The net profit increased to $1.2 billion from a loss of $561 million in as compared to the same time last year.
The Group added two 737 MAX8 to SIA’s operating fleet. As of December 31, 2022, SIA’s fleet consisted of 133 passenger aircraft and seven freighters; Scoot, meanwhile, had 55 passenger aircraft. The Group’s fleet has an average age of six years and six months.
The SIA Group is expecting delivery of A350-900 and B787-10 in the next financial year while Scoot is planning to add nine Embraer E190-E2 aircraft to its fleet
For the fourth quarter of FY2022/23, the SIA Group is projected to reach an average of 77% of pre-Covid-19 levels in terms of capacity. This is due to the strong travel demand during the year-end holiday season and the relaxation of travel restrictions to selected key markets.
With this, both SIA and Scoot have commercial services to 111 destinations in 36 countries and territories, including the resumption of services to China and Indonesia and increased frequencies to Hong Kong, Seoul, Taipei, and certain points in Japan. Additionally, Balikpapan in Indonesia has been added to the network.
From March 26 to October 28 2023 Scoot plans to expand its China capacity with flights to Haikou, Nanning, Ningbo, Shenyang, and Xi'an, and step-up frequencies to Athens, Langkawi, Manado, Perth, Taipei-Tokyo (Narita), and Taipei-Hokkaido. SIA will also offer supplementary flights to Barcelona, Frankfurt, and Rome during the 2023 summer peak, and services to Busan will resume in August 2023.