Search Results forsilverkris
Singapore Airlines’ Heathrow Silverkris Lounge to offer a refreshed customer experience in Summer 2024
Singapore Airlines is investing more than £3.5 million in refurbishing its SilverKris Lounge at London Heathrow Airport to deliver a refreshed experience for customers, with up to 16 per cent more seating space, enhanced facilities, and a new look unveiled in the summer. This follows the completion of a SGD$50 million dollar refurbishment of the flagship SilverKris and KrisFlyer Gold lounge in Singapore’s Changi Airport Terminal 3 in 2022. The design of the SilverKris Lounge in London Heathrow Airport will continue with the refreshed “Home Away from Home” concept, while taking elements from the recently completed flagship SilverKris Lounge in Singapore, so guests can look forward to distinct personal spaces that provide a sense of ‘being home’. Mohamed Rafi Mar, General Manager UK & Ireland, Singapore Airlines, said: “Having continuously operated from the UK’s capital for over 50 years, London is an important premium market for Singapore Airlines. The renovation of the SilverKris Lounge at London Heathrow demonstrates our commitment to London and will deliver an enhanced experience to our customers once reopened.” The SilverKris Lounge in London Heathrow Airport Terminal 2 will close from 8 February 2024, and will reopen later in the summer. During the closure period, Singapore Airlines First Class and Business Class customers, as well as PPS Club, KrisFlyer Elite Gold, and Star Alliance Gold members travelling on Singapore Airlines flights will be invited to use United Airlines’ United Club Lounge at Terminal 2, located opposite Gate B46. Eligible customers may also make use of the other Star Alliance lounges located within Heathrow Airport.
SIA Group reports record net profits in its 2024 annual report
Singapore Airlines’ parent company SIA Group released its full-year financials for 2024 today, 15th May. SIA Group reported a record $2.8 billion net profit, boosted by the one-off non-cash accounting gain of $1.1 billion from the Air India-Vistara merger. The aviation firm also reported an operating profit of $1.7 billion on lower yields from heightened competition, partially mitigated by record passenger carriage. As such, the SIA Group remains in a strong position to navigate global trade and macroeconomic uncertainties due to its robust foundations and long-term strategic investments. Group revenue report for 2024 Passenger revenues Group revenue climbed $527 million from a year before to a record $19,540 million, driven by resilient demand for air travel and cargo uplift in FY2024/25. SIA and Scoot carried a record 39.4 million passengers, up 8.1 percent, though group passenger load factor (PLF) fell 1.4 percentage points to 86.6 percent, as passenger traffic growth of 6.4 percent lagged capacity expansion of 8.2 percent. Passenger yields dipped 5.5 percent to 10.3 cents per revenue passenger-kilometre amidst intensified competition due to industry-wide capacity injection. For the year, passenger flown revenue came in at $15,849 million, up by one percent from last year. Cargo revenues Revenues earned from cargo improved by $94 million, buoyed by the strong demand for e-commerce and perishables, as well as the spillover from disruptions to sea freight. While the cargo load factor (CLF) rose 1.6 percentage points to 56.1 percent, yields decreased 7.8 percent due to increased competition. Higher spending in 2024 Meanwhile, group expenditure rose $1,546 million to $17,831 million, with non-fuel expenditure up $1,236 million, driven by the 8.9 percent overall capacity growth and cost escalation pressures. This was partially mitigated by the Group’s cost management measures, including digitalisation and productivity improvement initiatives. Net fuel cost increased by $309 million as the impact of the increase in volume uplifted and smaller fuel hedging gains was partially offset by an 8.5% reduction in fuel prices and favourable exchange rate impact. As a result, the Group recorded a lower operating profit of $1,709 million for FY2024/25, down $1,019 million from the prior year. Nevertheless, the Group’s net profit improved $103 million to a record $2,778 million, due to a $1,098 million non-cash accounting gain following the completion of the Air India-Vistara merger in November 2024. Fleet and network expansion and development As of 31st March of this year, the Group operating fleet comprised 205 aircraft with an average age of seven years and eight months. SIA operated 145 passenger aircraft and seven freighters, while Scoot had 53 passenger aircraft. Just last month, the Group added one Airbus A321neo and one Boeing 787-8 to its fleet, and, as of 1st May, the Group had 78 aircraft on order. The Group’s passenger network covered 128 destinations in 36 countries and territories as of 31 March 2025. SIA served 79 destinations while Scoot operated 71 destinations. The Group’s cargo network comprised 132 destinations in 37 countries and territories. For the Northern Summer 2025 operating season (30 March to 25 October), SIA will increase services to Brisbane, Colombo, Jakarta, Johannesburg, London (Gatwick), Manila, and Seattle. Scoot launched services to Iloilo City in April 2025 and will begin operations to Vienna in June 2025. Corporate initiatives The Group remains committed to building strategic partnerships that enhance its network connectivity and unlock growth opportunities. All Nippon Airways (ANA) and SIA will commence revenue-sharing flights between Japan and Singapore from September 2025, with the joint fare products for these services going on sale in May 2025. This deepened commercial collaboration enables ANA and SIA to offer customers additional value beyond the existing codeshare partnerships, providing a greater variety of fare options and enhanced flight schedules, which will further strengthen connectivity for both passenger travel and air freight between Japan and Singapore. To bolster its premium positioning and elevate the end-to-end customer journey, SIA announced a $1.1 billion investment in November 2024 to install all-new long-haul cabin products across its Airbus A350-900 long-haul and ultra-long-range (ULR) fleet, redefining the premium travel experience across its network. This includes the introduction of its new First Class cabin in seven A350-900ULR aircraft, setting new industry benchmarks for travel on the world’s longest routes. Last month, SIA announced a $45 million transformation of its SilverKris and KrisFlyer Gold lounges at Singapore Changi Airport Terminal 2. The revamped lounges will feature 50% more space and seating capacity, upgraded facilities, signature elements from SIA’s flagship lounges at Changi Airport Terminal 3, and a wider variety of food and beverage options. At the same time, the Group continues to invest in its digital capabilities, including Generative Artificial Intelligence (GenAI), giving it an edge in the competitive aviation landscape. SIA and Salesforce are collaborating on AI-powered customer service applications to enable the Airline to deliver more consistent and personalised service to its customers. Both companies also plan to co-develop AI solutions for airlines to provide greater value and additional benefits to the industry. In addition, SIA is working with OpenAI to develop and implement advanced GenAI solutions to enhance the Airline’s customer experience and operational efficiency.
SIA Group announces Record $2.8 billion net profit
The SIA Group remains in strong position to navigate global trade and macroeconomic uncertainties due to its robust foundations and long-term strategic investments. The Singapore Airlines (SIA) Group’s financial performance for the financial year FY2024/25 is summarised as follows: Group Financial Results FY2024/25 ($ million) FY2023/24 ($ million) Better/ (Worse) (%) 2nd Half FY2024/25 ($ million) 2nd Half FY2023/24 ($ million) Better/ (Worse) (%) Total Revenue 19,540 19,013 2.8 10,042 9,850 1.9 Total Expenditure 17,831 16,285 (9.5) 9,129 8,677 (5.2) Net Fuel Cost 5,386 5,077 (6.1) 2,656 2,794 4.9 Fuel Cost (before hedging) 5,441 5,468 0.5 2,643 2,940 10.1 Fuel Hedging (Gain)/Loss (55) (391) (85.9) 13 (147) n.m. Non-fuel Expenditure 12,445 11,209 (11.0) 6,473 5,883 (10.0) Operating Profit 1,709 2,728 (37.3) 914 1,174 (22.1) Net Profit 2,778 2,675 3.9 2,036 1,234 65.0 Group revenue climbed $527 million (+2.8%) from a year before to a record $19,540 million, driven by resilient demand for air travel and cargo uplift in FY2024/25. SIA and Scoot carried a record 39.4 million passengers, up 8.1%. Group passenger load factor (PLF) fell 1.4 percentage points to 86.6%, as passenger traffic growth of 6.4% lagged capacity expansion of 8.2%. Passenger yields dipped 5.5% to 10.3 cents per revenue passenger-kilometre amidst intensified competition due to industry-wide capacity injection. For the year, passenger flown revenue came in at $15,849 million (+1.0%). Cargo flown revenue improved by $94 million (+4.4%), buoyed by the strong demand for e-commerce and perishables, as well as the spillover from disruptions to sea freight. While the cargo load factor (CLF) rose 1.6 percentage points to 56.1%, yields decreased 7.8% due to increased competition. Group expenditure rose $1,546 million (+9.5%) to $17,831 million, with non-fuel expenditure up $1,236 million (+11.0%), driven by the 8.9% overall capacity growth and cost escalation pressures. This was partially mitigated by the Group’s cost management measures, including digitalisation and productivity improvement initiatives. Net fuel cost increased by $309 million (+6.1%) as the impact of the increase in volume uplifted (+$508 million) and smaller fuel hedging gains (+$336 million) was partially offset by an 8.5% reduction in fuel prices (-$510 million) and favourable exchange rate impact (-$25 million). As a result, the Group recorded a lower operating profit of $1,709 million for FY2024/25, down $1,019 million (-37.3%) from the prior year. The Group’s net profit improved $103 million (+3.9%) to a record $2,778 million, due to a $1,098 million non-cash accounting gain following the completion of the Air India-Vistara merger in November 2024. Second Half FY2024/25 – Profit and Loss The Group achieved its highest half-yearly revenue of $10,042 million, a $192 million (+1.9%) increase from the same period last year as key business segments registered higher revenue. Passenger revenue rose by $46 million (+0.6%) and cargo revenue by $52 million (+4.9%) as passenger and cargo carriage grew by 5.0% and 7.3% respectively. However, intense competition pushed yields down by 4.5% for passenger and 2.1% for cargo. Group PLF was 0.5 percentage point lower at 86.8%, while the CLF fell by 1.4 percentage points to 54.9%. Operating expenditure grew $452 million (+5.2%), with non-fuel expenditure increasing $590 million (+10.0%), outpacing the overall capacity expansion (+7.3%) due to cost escalation. The increase in non-fuel expenditure was partially offset by a $138 million (-4.9%) reduction in net fuel cost. The decrease in fuel cost was primarily due to a 15.6% decline in fuel prices (-$496 million), which more than compensated for the increased fuel volume uplifted (+$229 million) and a swing from fuel hedging gain last year to a loss (+$160 million) this year. Accordingly, compared to the same period last year, operating profit declined $260 million (-22.1%) to $914 million. The Group’s net profit for the second half of the year surged $802 million (+65.0%) to $2,036 million due to the non-cash accounting gain from the Air India-Vistara merger. BALANCE SHEET The Group’s shareholder equity stood at $15.7 billion as of 31 March 2025, $0.7 billion lower than 31 March 2024. This was largely due to the redemption of the remaining Mandatory Convertible Bonds (MCBs) in June 2024, along with the payments of the FY2023/24 final dividend and FY2024/25 interim dividend. Total debt balances fell $0.5 billion to $12.9 billion, with the debt-equity ratio remaining flat at 0.82. Cash and bank balances declined by $3.0 billion to $8.3 billion, mainly due to capital expenditure disbursements ($1.8 billion), MCB redemption ($1.7 billion), dividend payments ($1.4 billion), and the investment in Air India ($1.0 billion), partially offset by $4.7 billion in net cash generated by operations. The Group also held $1.8 billion in fixed deposits with tenors exceeding 12 months, classified under other assets. In addition to holding one of the strongest balance sheets in the industry, the Group also currently maintains access to additional liquidity of $3.3 billion committed lines of credit, all of which remain undrawn. FLEET AND NETWORK DEVELOPMENT As of 31 March 2025, the Group operating fleet comprised 205 aircraft with an average age of seven years and eight months. SIA operated 145 passenger aircraft1 and seven freighters, while Scoot had 53 passenger aircraft2. In April 2025, the Group added one Airbus A321neo and one Boeing 787-8 to its fleet. As of 1 May 2025, the Group had 78 aircraft on order3. The Group’s passenger network4 covered 128 destinations in 36 countries and territories as of 31 March 2025. SIA served 79 destinations while Scoot operated to 71 destinations. The cargo network comprised 132 destinations in 37 countries and territories. For the Northern Summer 2025 operating season (30 March 2025 to 25 October 2025), SIA will increase services to Brisbane, Colombo, Jakarta, Johannesburg, London (Gatwick), Manila, and Seattle. Scoot launched services to Iloilo City in April 2025 and will begin operations to Vienna in June 2025. STRATEGIC INITIATIVES The Group remains committed to building strategic partnerships that enhance its network connectivity and unlock growth opportunities. All Nippon Airways (ANA) and SIA will commence revenue-sharing flights between Japan and Singapore from September 2025, with the joint fare products for these services going on sale in May 2025. This deepened commercial collaboration enables ANA and SIA to offer customers additional value beyond the existing codeshare partnerships, providing a greater variety of fare options and enhanced flight schedules, which will further strengthen connectivity for both passenger travel and air freight between Japan and Singapore. To bolster its premium positioning and elevate the end-to-end customer journey, SIA announced a $1.1 billion investment in November 2024 to install all-new long-haul cabin products across its Airbus A350-900 long-haul and ultra-long-range (ULR) fleet, redefining the premium travel experience across its network. This includes the introduction of its new First Class cabin in seven A350-900ULR aircraft, setting new industry benchmarks for travel on the world’s longest routes. In April 2025, SIA announced a $45 million transformation of its SilverKris and KrisFlyer Gold lounges at Singapore Changi Airport Terminal 2. The revamped lounges will feature 50% more space and seating capacity, upgraded facilities, signature elements from SIA’s flagship lounges at Changi Airport Terminal 3, and a wider variety of food and beverage options. The Group continues to invest in its digital capabilities, including Generative Artificial Intelligence (GenAI), giving it an edge in the competitive aviation landscape. SIA and Salesforce are collaborating on AI-powered customer service applications to enable the Airline to deliver more consistent and personalised service to its customers. Both companies also plan to co-develop AI solutions for airlines to provide greater value and additional benefits to the industry. In addition, SIA is working with OpenAI to develop and implement advanced GenAI solutions to enhance the Airline’s customer experience and operational efficiency. CELEBRATING WITH SINGAPORE The Group is commemorating Singapore’s 60th year of independence with a series of SG60-themed initiatives. In April 2025, special SG60 fare deals were offered for travel between April and November 2025. Customers can also enjoy SG60 exclusives on Kris+, KrisShop, and Pelago, bonus miles accrual on Scoot flights, as well as additional discounts during KrisFlyer’s upcoming Spontaneous Escapes in August 2025. The Group also aims to raise $1.3 million in a SG60 fundraising campaign and will match the amount raised dollar-for-dollar, donating a total of $2.6 million to AWWA and Rainbow Centre, two Singapore-based agencies that support children and youth with disabilities and developmental needs. In addition, SIA will also host a special two-day edition of its SIA Cares Open House in July 2025, welcoming more than 600 beneficiaries, including individuals from disadvantaged backgrounds, youth at risk, and the differently abled, for an exclusive behind-the-scenes tour of SIA’s training centre. FINAL DIVIDEND The Board of Directors has recommended a final dividend of 30 cents per share for FY2024/25. Including the interim dividend of 10 cents per share paid on 11 December 2024, the total dividend for FY2024/25 will be 40 cents per share, representing a total dividend distribution of $1.2 billion for the year. Subject to shareholders’ approval at the Annual General Meeting on 25 July 2025, the final dividend (tax exempt, one-tier) will be paid on 27 August 2025 for shareholders as of 11 August 2025. OUTLOOK The global airline industry faces a challenging operating environment amid changing tariff policies and trade tensions, economic and geopolitical uncertainties, and continued supply chain constraints. These factors may impact consumer and business confidence, potentially affecting both passenger and cargo markets. The Group remains vigilant, closely monitoring developments and prepared to respond swiftly to market conditions. The Group will rely on its strong foundations, including dual brand portfolio airline, well-diversified global network, a robust balance sheet, talented and dedicated workforce, as well as industry-leading digital capabilities to navigate these challenges. Shifts in global passenger and trade flows may also open new opportunities for the Group, with its well-diversified global passenger and cargo network. Its hub in Singapore offers a strategic advantage, given its position at the centre of growing economies in South East Asia, South Asia, and the wider Asia-Pacific region, and the Group’s strong presence in these markets. The Group’s dual-brand strategy, which leverages both SIA and Scoot, provides it with the flexibility to offer customers a wide range of options while responding nimbly to market dynamics. In addition, win-win partnerships with like-minded carriers allow it to work together with these airlines to open up growth opportunities particularly in the Asia-Pacific region. SIA and Tata Sons (Tata) successfully completed the Air India-Vistara merger on 12 November 2024, reinforcing the Group’s multi-hub strategy. SIA now holds a 25.1% stake in the enlarged Air India, allowing it to participate directly in the fast-expanding Indian aviation market. SIA and Tata are firmly committed to supporting the growth and success of Air India, which has a strong presence across all key segments of the Indian market. Continued focus on product leadership and service excellence, including investments in next-generation aircraft, new cabin products, and airline lounges, will help the Group’s airlines maintain their competitive edge by providing customers with more value and enhancing the end-to-end travel experience. While global uncertainties remain, the Group is in a strong position to focus on profitability, while pursuing growth opportunities and ensuring long-term value creation for shareholders.
SIA invests S$45 million in Changi Airport Terminal 2 Lounges
Singapore Airlines (SIA) will transform its SilverKris and KrisFlyer Gold lounges at Singapore Changi Airport Terminal 2 over the next two years, investing S$45 million to elevate the on-ground customer experience at its main hub. The revamped lounges will boast 50% more space and seating capacity, and feature upgraded facilities, signature elements from SIA’s flagship lounges at Changi Airport Terminal 3, and an enhanced variety of food and beverage options. Yeoh Phee Teik, Senior Vice President Customer Experience, Singapore Airlines said: “This significant investment underscores Singapore Airlines’ unwavering commitment to elevating the end-to-end travel experience for our customers. Building on the success of our Terminal 3 lounges, we are extending our signature hospitality and thoughtfully curated offerings to Terminal 2. This upgrade reaffirms our continued dedication to providing a seamless, world-class experience that meets the high expectations of our discerning customers.” The all-new First Class SilverKris Lounge will feature a spacious area with increased capacity, higher ceilings, and floor-to-ceiling windows. The renovated bar will offer a premium experience, including barista services in the morning. The live cooking stations in the First Class SilverKris Lounge will serve a wide range of popular Singaporean, Asian, and Western cuisine of dishes, while the self-service buffet will also be expanded to mirror the offerings available at the SilverKris Lounge in Terminal 3. The Business Class SilverKris Lounge will expand by 30%, providing customers with more space and comfort. It will include a quiet rest area with recliners for customers to relax before their flight, and a redesigned living room area with diverse seating options including wingback chairs, sofa seats, and productivity pods. These will give customers the flexibility to work, dine, or rest in comfort. The expanded self-service buffet will feature both Asian and Western cuisines. A new full-service bar will complement the dining experience, serving fresh barista-made coffee in the morning and signature cocktails in the evening. The KrisFlyer Gold Lounge will double its capacity, offering various seating options, such as armchairs for lounging, workstations, and dining seats. New amenities will include in-lounge restrooms and shower suites, enabling customers to freshen up before their flights. To minimise disruption to customers, renovation will be carried out in phases. Construction of the new First Class SilverKris Lounge will begin on 15 April 2025, with expected completion by the fourth quarter of 2025. Construction of the new Business Class SilverKris Lounge is expected to begin in the fourth quarter of 2025, and the new KrisFlyer Gold Lounge in the first half of 2026.
SIA Group marks Singapore’s SG60
The Singapore Airlines (SIA) Group will commemorate Singapore’s 60th year of independence with a series of SG60-themed initiatives from April to December 2025, as part of its Celebrating with Singapore campaign. Goh Choon Phong, Chief Executive Officer, Singapore Airlines, said: “As we celebrate Singapore's 60-year nation-building journey, the SIA Group is deeply grateful for the unwavering support of our customers and the Singapore public. Our story is intertwined with Singapore’s growth and progress as a country, and the Celebrating with Singapore campaign is our way of expressing gratitude, giving back to the community, and marking SG60 meaningfully.” Customers can enjoy special SG60 fare deals for Singapore Airlines and Scoot flights, bonus miles accrual on Scoot flights, and additional discounts during KrisFlyer’s upcoming Spontaneous Escapes promotions. There will also be SG60 exclusives on Kris+, KrisShop, and Pelago. KrisWorld, SIA’s in-flight entertainment system, will feature content highlighting Singapore’s history, arts, and culture in its Celebrating Singapore category. The Airline will also showcase the country’s famous cuisine on selected flights and SilverKris lounges. The SIA Group also aims to raise $1.3 million in a SG60 fundraising campaign by rallying partners and staff to do good together. The Group will match the amount raised dollar-for-dollar, donating a total of $2.6 million to AWWA and Rainbow Centre, two Singapore-based agencies that support children and youth with disabilities and developmental needs. In addition, SIA will also host a special two-day edition of its SIA Cares Open House in July, welcoming more than 600 beneficiaries, including individuals from disadvantaged backgrounds, youth at risk, and the differently abled, from various Singapore-based social service agencies for an exclusive behind-the-scenes tour of SIA’s training centre.
SIA Group posts record full year net profit of $2,675 million
The demand for air travel remained buoyant throughout FY2023/24, boosted by a rebound in North Asia as China, Hong Kong SAR, Japan, and Taiwan fully reopened their borders. SIA and Scoot carried a combined 36.4 million passengers, up 37.6% year-on-year. Passenger traffic grew 26.6%, outpacing the capacity expansion of 22.9%. As a result, the Group passenger load factor (PLF) improved 2.6 percentage points to a record 88.0%. SIA and Scoot registered record PLFs of 87.1% and 91.2% respectively. Group revenue rose $1,238 million (+7.0% year-on-year) to a record $19,013 million. Passenger flown revenue rose by $2,319 million (+17.3%) to $15,685 million, despite a 7.6% decline in passenger yields. Cargo flown revenue fell $1,485 million (-41.2%) to $2,119 million. While cargo loads increased by 1.7% due to the strong demand from the e-commerce segment, yields were 42.2% lower year-on-year – albeit 29.8% above pre-pandemic levels2. Group expenditure increased $1,202 million (+8.0%) to $16,285 million. Non-fuel expenditure rose by $1,336 million (+13.5%), and was partially offset by a $132 million decrease (-2.5%) in net fuel cost. The increase in non-fuel expenditure was lower than the 16.0% increase in overall passenger and cargo capacity. On the other hand, net fuel cost fell despite higher volumes uplifted (+$918 million) and a lower fuel hedging gain (+$358 million), mainly due to an 18.5% decrease in fuel prices (-$1,281 million). As a result, Group operating profit reached a record $2,728 million, up $36 million or 1.3% from a year before. The Group’s net profit improved by $518 million (+24.0%) to $2,675 million. This was mainly due to the better operating performance (+$36 million), a net interest income versus net finance charges a year before (+$215 million), lower tax expense (+$132 million)3, and a share of profits versus a share of losses of associated companies from the previous year (+$104 million). Second Half FY2023/24 – Profit and Loss Second half Group revenue rose by $492 million (+5.3%) year-on-year to $9,850 million, marking a record for the Group’s half-yearly revenue. This was driven by a $749 million (+10.1%) increase in passenger flown revenue on the back of a 17.5% growth in traffic, which was slightly below the 17.7% expansion in capacity. The Group PLF remained almost flat at 87.3% (-0.1 percentage point). Passenger yields declined 6.0% on intensifying competition as other airlines progressively restored capacity. Cargo revenue fell $446 million (-29.7%), with yields declining (-35.9%) amid the recovery in bellyhold cargo capacity. This was partly offset by an increase in loads (+9.7%) due to robust e-commerce flows. The demand for air freight from Asia was also supported by security concerns in the Red Sea, bolstering the overall cargo performance. Expenditure grew $776 million (+9.8%), consisting of a $496 million increase (+9.2%) in non-fuel expenditure and a $280 million increase (+11.1%) in net fuel cost. Net fuel cost increased to $2,794 million, mainly due to higher volume uplifted (+$365 million) and lower fuel hedging gain (+$185 million), and partially offset by a 6.8% drop in fuel prices (-$219 million). In the second half, the Group operating profit decreased by $284 million (-19.5%) from the previous year to $1,174 million. The Group net profit was stable, rising $4 million year-on-year to $1,234 million. This was mainly driven by a lower tax expense (+$249 million) and a surplus on disposal of aircraft, spares, and spare engines versus a loss the year before (+$45 million), which offset the decline in operating performance. Balance Sheet As of 31 March 2024, the Group shareholders’ equity was $16.3 billion, down $3.5 billion from 31 March 2023. This was due to the partial redemption in June and December 2023 of the June 2021 Mandatory Convertible Bonds (MCBs) for $5.1 billion, including accrued yield. Total debt balances decreased by $1.9 billion to $13.4 billion, mainly due to the repayment of borrowings. As a result, the Group’s debt-equity ratio increased from 0.77 times to 0.82 times. Cash and bank balances decreased by $5.1 billion to $11.3 billion, arising from the redemption of the MCBs, repayment of borrowings, and payment of dividends. This was mitigated by the $5.1 billion of net cash generated from operations, which included proceeds from forward sales. On top of the cash on hand, the Group has access to $2.9 billion of committed lines of credit, all of which remain untapped at present. Fleet and network development As of 31 March 2024, the Group operating fleet consisted of 200 aircraft with an average age of seven years and three months. SIA had 142 passenger aircraft4 and seven freighters, while Scoot had 51 passenger aircraft5. In April 2024, the Group added one Airbus A350-900 and two Embraer E190-E2 aircraft to its fleet. As of 1 May 2024, the Group had 89 aircraft on order6. As of 31 March 2024, the Group’s passenger network7 covered 118 destinations in 35 countries and territories. SIA served 73 destinations while Scoot served 67. The cargo network comprised 123 destinations in 37 countries and territories. For the Northern Summer 2024 operating season (31 March 2024 to 26 October 2024), Barcelona, Beijing, Darwin, Hong Kong SAR, Houston, Kuala Lumpur, Melbourne, Milan, Perth, Rome, Seattle, Shanghai, Taipei-Tokyo (Narita), and Yangon will see an increase in services. SIA launched services to Brussels in April 2024 and will begin operations to London (Gatwick) in June 2024. Scoot began Embraer E190-E2 operations on 7 May 2024 with flights to Krabi. The aircraft will operate to existing destinations such as Hat Yai, Miri, and Kuantan, as well as two new points – Koh Samui (in May 2024) and Sibu (in June 2024). Operating the aircraft on thinner routes to non-metro destinations in the Asia-Pacific allows the Group to unlock significant growth opportunities in the region. Final dividend The Board of Directors recommends a final dividend of 38 cents per share for FY2023/24. Including the interim dividend of 10 cents per share paid on 22 December 2023, the total dividend for FY2023/24 will be 48 cents per share. Subject to shareholder approval at the Annual General Meeting on 29 July 2024, the final dividend (tax exempt, one-tier) would be paid on 21 August 2024 for shareholders as of 2 August 2024. Subsequent event – all remaining MCBS to be redeemed On 15 May 2024, the Company announced its intention to redeem all remaining MCBs that were issued in June 2021. The accreted principal amount payable, being 112.616% of the principal amount of the MCBs, will be $1,744.6 million. The redemption amount will be paid to eligible bondholders on 24 June 2024. With this, the Company would have fully redeemed the $9.7 billion of MCBs that were issued in 2020 and 2021. The SIA Group thanks all shareholders, including Temasek, for their strong support for its Right Issues during the Covid-19 pandemic. Outlook The demand for air travel remains healthy in the first quarter of FY2024/25, supported by a strong pick up in forward bookings to North Asia and South East Asia. Passenger yields will likely continue to moderate due to increased capacity injection by airlines, especially in the Asia-Pacific region. The Group will closely monitor market conditions and adjust our network as necessary in line with demand patterns. Cargo demand strengthened towards the end of FY2023/24, on the back of healthy e-commerce demand, resilient and growing segments such as perishables and concerts, as well as a shift to air freight by some shippers due to security concerns in the Red Sea region. While yields have held above pre-pandemic levels in FY2024/25, there continues to be downward pressure as industry bellyhold capacity increases. The Group will monitor key trade lanes to ensure the competitiveness of the cargo segment. The airline industry continues to face challenges including rising geopolitical tensions, an uncertain macroeconomic climate, supply chain constraints, and high inflation in many parts of the world. Maintaining the SIA Group’s leadership position The SIA Group is well-positioned to seize emerging growth opportunities and navigate uncertainties thanks to its strong foundations and long-term strategic initiatives. These include its robust balance sheet, a firm commitment to developing its people, and long-standing investment in digital capabilities including Generative Artificial Intelligence. The Group also continuously invests in the three pillars of its brand promise – network connectivity, product leadership, and service excellence. The Group will continue to enhance the synergies between SIA and Scoot. Leveraging two industry-leading brands in its portfolio allows the Group to offer a wider variety of options to travellers, and respond in a nimble and flexible manner to changing market dynamics. Stronger partnerships with other like-minded carriers, as well as enhanced code-share arrangements, allow the SIA Group to offer a combined network that covers 387 destinations, giving customers more options and greater value. The proposed merger of Air India and Vistara was approved by the Competition and Consumer Commission of Singapore on 5 March 2024. It is pending foreign direct investment and other regulatory approvals. Once completed, it will give SIA a 25.1% stake in an enlarged Air India Group with a significant presence in all key Indian airline market segments, including domestic, international, full-service, and low-cost. This will strengthen SIA’s multi-hub strategy, and allow the Group to continue participating directly in this large and fast-growing aviation market. Membership numbers at KrisFlyer, the SIA Group’s loyalty programme, grew 31% year-on-year to 8.8 million members as of 31 March 2024, while revenues at the programme level were more than 20% higher at $1.21 billion. KrisFlyer continues to expand its reach with more partnerships, and provide greater options for members to earn and use their miles. SIA continues to invest in enhancing the end-to-end customer experience. A new SilverKris Lounge at Perth International Airport was opened in February 2024, and plans are underway to progressively upgrade other lounges in SIA’s network. In March 2024, SIA unveiled a comprehensive revamp of its Premium Economy Class in-flight experience, introducing a wide variety of new and refreshed meal options, along with a new amenity kit. Customer feedback to these enhancements has been very positive. The SIA Group is firmly committed to its sustainability goals, and continuously seeks ways to integrate them across its operations. In November 2023, SIA and Scoot set a target to fulfil 5% of their total fuel requirements with Sustainable Aviation Fuel (SAF) by 2030. This marks an important milestone in the Group’s decarbonisation journey, and its long-term goal of achieving net zero carbon emissions by 2050. In May 2024, the Group signed an agreement with Neste to purchase 1,000 tonnes of neat SAF, which will be the first batch to be produced in Neste’s Singapore refinery for delivery to Singapore Changi Airport. This builds on the Group’s long-standing collaboration with industry and ecosystem stakeholders to support the increased production and use of SAF in Singapore. The SIA Group is deeply committed to making a positive impact in the communities it serves. In September 2023, its SIA Cares fundraising drive helped to raise $2.6 million for two Singapore-based social service agencies that support communities with special needs. Continuing with this long-standing commitment, the Group plans to establish a foundation that will support individuals in need and contribute to the advancement of Singapore’s aviation industry. More details will be shared at a later date. The SIA Group is grateful for the strong support from all customers, both in Singapore and around the world, as well as all stakeholders including our shareholders, partners, and staff.
No companies found matching your search.
Return To HomeNo Event found matching your search.
Return To Home