‘Robust’ demand drives Singapore Airlines Group record quarterly revenue

Singapore Airlines Group has reported record quarterly revenue of just over S$5 billion (£2.9 billion) thanks to “robust passenger demand”.

Its third-quarter results for the three months to December 31, 2023, said demand for air travel was “led by a rebound in North Asia as China, Hong Kong SAR, Japan and Taiwan fully reopened”.

Furthermore, the net profit for the nine months to the end of December rose by S$545 million year on year to a record S$2.1 billion (£1.2 billion), surpassing the S$2,000 million mark for the first time.

Singapore Airlines and low-cost sibling brand Scoot carried 9.5 million passengers, up 29.4% year on year.

The group said it expects to return to pre-pandemic capacity levels within FY2024-25.

In a statement, it continued: “The demand for air travel remains healthy in the last quarter of FY2023-24 and the first quarter of FY2024-25.

“Forward sales continue to be robust, in line with capacity increases in most markets, supported by the demand for leisure travel through the school holidays and Easter peak in March and April 2024.

“Nonetheless, passenger yields continue to come under pressure from increased competition as capacity restoration continues across the industry.

“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.”

It added: “The SIA Group will navigate these headwinds by being nimble in matching capacity to demand, remaining alert to revenue and growth opportunities, and maintaining cost discipline.”