• Strong demand drives record revenue, operating profit and passenger load factor
for the Group
• Robust near term forward passenger sales across all cabin classes
• Cargo revenue remained above pre-Covid levels despite softer demand
• Airline industry continues to navigate geopolitical and economic uncertainties,
high cost inflation, and increasing global passenger capacity
• Commitment to best-in-class products and services, and continued investment in
strategic initiatives, position the Group for future opportunities
• Proposed final dividend of 28 cents per share
At the onset of the Covid-19 pandemic in 2020, the Group acted swiftly and decisively to shore up liquidity and build its financial resilience. This strong liquidity position, and the confidence it engendered, enabled the Group to take a long term view and make several strategic decisions ahead of the recovery in global air travel. SIA and Scoot retained most of their talented staff, who were ready to step up when called upon.
A large proportion of the Group’s aircraft fleet were kept operational, albeit at low utilisation levels in the early phase of the recovery, ensuring that they were properly maintained and fully functional. The Group built up a strong base network in a deliberate and calibrated manner, ensuring that SIA and Scoot were in position to ramp up ahead of any return in passenger traffic.
As a result, when the demand for air travel surged in FY2022/23 after Singapore fully reopened its borders in April 2022, and as restrictions on international air travel eased globally, SIA and Scoot could ramp up operations at short notice. Working
collaboratively with key members of Singapore’s aviation ecosystem, both carriers were among the first to launch flights as borders reopened, and captured the pent-up demand as air travel returned.
Group passenger capacity reached 79% of pre-Covid1 levels in March 2023, higher than the 58%2 level for international scheduled services of Asia-Pacific airlines.
SIA and Scoot collectively carried 26.5 million passengers, up six-times from a year before. The passenger load factor (PLF) jumped 55.3 percentage points to 85.4%, the highest in the Group’s history. SIA achieved a record PLF of 85.8%, while Scoot delivered a PLF of 83.9%.
The cargo segment’s performance moderated year-on-year as the demand for air freight declined, and as supply chain disruptions brought about by the Covid-19 pandemic subsided. Macroeconomic headwinds dampened consumer demand, while high inventory levels led to a slowdown in new orders. Cargo yields fell year-on-year as industry bellyhold capacity increased with the progressive restoration of passenger flights. Nevertheless, cargo revenue remained 83% above the pre-Covid level recorded in calendar year 2019.
Group revenue increased by $10,160 million (+133.4%) year-on-year to a record $17,775 million. Passenger flown revenue rose $10,560 million (+376.3%) to $13,366 million as traffic grew 449.9%, outpacing the capacity expansion of 94.0%.
Revenue per available seat-kilometre (RASK) was 10.0 cents, the highest yearly RASK in the Group’s history. Cargo flown revenue fell $735 million (-16.9%) to $3,604 million as a result of lower cargo loads (-11.4%) and yields (-6.2%). Notwithstanding, this was the second-highest annual cargo revenue figure in the Group’s history.
Expenditure grew by $6,858 million (+83.4%) year-on-year to $15,083 million. This comprised a $3,020 million increase (+138.0%) in net fuel costs, a $3,761 million increase (+61.5%) in non-fuel expenditure, and a $77 million increase from the
year-on-year impact of the fair value changes on fuel derivatives. Net fuel cost rose to $5,209 million, mainly due to the 49.6% increase in fuel prices (+$1,942 million) and higher volumes uplifted (+$1,495 million), and this was partially offset by higher fuel hedging gains (-$530 million). The increase in non-fuel expenditure was well within the 94.0% increase in passenger capacity.
Group operating profit came in at a record $2,692 million, reversing the $610 million loss in FY2021/22. Operating profit for SIA was a record $2,601 million, an increase of $2,713 million from the previous financial year. Scoot achieved a record
operating profit of $148 million, up $602 million from FY2021/22.
The Group posted a record net profit of $2,157 million for the year, versus a $962 million net loss in the previous year (+$3,119 million). This was mainly driven by better operating performance (+$3,302 million) and lower net finance charges (+$338 million), and partially offset by a tax expense versus a tax credit last year (-$615 million).
The SIA Group’s record financial performance for FY2022/23 is a testament to its proactive strategic initiatives, pre-emptive preparation that was made when borders remained closed, and the hard work, dedication, and sacrifices of its employees.
Second Half FY2022/23 – Profit and Loss
The Group posted a record second half operating profit of $1,458 million, an improvement of $224 million (+18.2%) from the first half, as the strong demand for air travel continued into the second half of the financial year.
Revenues rose $941 million (+11.2%) compared to the previous six months to $9,358 million, the highest half-year revenue for the SIA Group. Passenger flown revenue increased $1,408 million (+23.5%) on the back of a 24.8% growth in traffic,
outpacing the 18.5% expansion in capacity. PLF rose 4.4 percentage points to a record 87.4%. RASK was 10.2 cents, the highest half-year RASK in the Group’s history. Cargo flown revenue fell $594 million (-28.3%) due to a decline in loads (-5.2%) and yields (-24.3%).
Expenditure grew by $719 million (+10.0%) half-on-half to $7,901 million. This comprised a $900 million rise in non-fuel expenditure (+20.1%) that was partly offset by a $182 million decrease (-6.8%) in net fuel cost. Net fuel cost fell to $2,514 million, mainly due to a 17.2% drop in fuel prices (-$595 million). This was partly offset by higher volumes uplifted (+$343 million) and lower fuel hedging gain (+$85 million). The increase in non-fuel expenditure was in line with the increase in passenger and cargo capacity.
