SIA group posts strong third quarter net profit of $659 million

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The demand for air travel remained robust in the three months to 31 December 2023, led by a rebound in North Asia as China, Hong Kong SAR, Japan, and Taiwan fully reopened. SIA and Scoot carried 9.5 million passengers, up 29.4% year-on-year. Passenger traffic grew 19.1%, outpacing the capacity expansion of 17.9%. As a result, the Group passenger load factor (PLF) improved by 0.8 percentage points to 88.2%.


Third Quarter FY2023/24 – Profit and Loss

The Singapore Airlines (SIA) Group financial performance for the third quarter of FY2023/24 is summarised as follows:

Group Financial Results
3rd Quarter


($ million)

3rd Quarter


($ million)

Better/ (Worse)


9 Months


($ million)

9 Months


($ million)

Better/ (Worse)


Total Revenue

Total Expenditure

Net Fuel Cost

Fuel Cost (before hedging)

Fuel Hedging Gain

Non-fuel Expenditure

Operating Profit

Net Profit


Revenue rose $236 million (+4.9% year-on-year) to a quarterly record of $5,082 million, going past the $5,000 million mark for the first time in the Group’s history. Passenger flown revenue rose by $398 million (+10.6%) to $4,165 million, despite a 7.4% decline in passenger yields. Cargo flown revenue fell $303 million (-35.1%) to $559 million. While cargo loads increased by 3.9% due to strong year-end demand from the e-commerce segment, cargo yields were 37.4% lower year-on-year. Nevertheless, yields remained 32.1% above pre-pandemic levels1.

Expenditure increased by $382 million (+9.3%) to $4,473 million. This comprised a $261 million increase (+9.5%) in non-fuel expenditure, and a $121 million increase (+9.1%) in net fuel cost. The rise in net fuel cost was mainly due to the higher volume uplifted (+$176 million) and a lower fuel hedging gain (+$109 million), partially offset by a 6.6% decrease in fuel prices (-$114 million). The increase in non-fuel expenditure was in line with the 11.1% increase in overall passenger and cargo capacity.

As a result, the Group recorded a third quarter operating profit of $609 million, a decrease of $146 million (-19.3%) from the previous year. The Group’s net profit improved by $31 million (+4.9%) to $659 million. This was mainly due to a lower tax expense (+$124 million)2, a share of profits versus a share of losses of associated companies the previous year (+$35 million), a surplus on disposal of aircraft, spares, and spare engines versus a loss the year before (+$21 million), a higher net interest income (+$11 million), and partially offset by the lower operating profit (-$146 million).

April to December 2023 – Profit and Loss

Group revenue for the nine months to December 2023 rose by $981 million (+7.4%) to a record $14,244 million. This was driven by a $1,969 million (+20.2%) increase in passenger flown revenue, and partially offset by a $1,342 million (-45.3%) drop in cargo flown revenue. Expenditure grew $808 million (+7.2%), consisting of a $1,100 million increase (+15.2%) in non-fuel expenditure and a $292 million drop (-7.2%) in net fuel cost. Net fuel cost fell to $3,737 million, mainly due to a 22.0% drop in fuel prices (-$1,186 million) that was partially offset by the higher volume uplifted (+$734 million) and a lower fuel hedging gain (+$282 million).

The Group operating profit rose $174 million (+8.7%) year-on-year to a record $2,163 million.
The Group net profit for the nine months rose $545 million (+35.0%) year-on-year to a record $2,100 million, surpassing the $2,000 million mark for the first time. This was mainly due to the better operating performance (+$174 million), a net interest income versus net finance charges (+$233 million), and a share of profits versus a share of losses from associated companies the previous year (+$122 million).

Balance Sheet

As of 31 December 2023, the Group shareholders’ equity was $15.6 billion, down $4.3 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. Following the redemptions, 25% of the MCBs issued in June 2021 remain outstanding. Total debt balances decreased by $1.6 billion to $13.7 billion, mainly due to the repayment of borrowings. As a result, the Group’s debt-equity ratio increased from 0.77 times to 0.88 times.

Cash and bank balances decreased by $5.8 billion to $10.5 billion, arising from the redemption of the MCBs, repayment of borrowings, and payment of dividends. This was partially mitigated by the $3.7 billion of net cash generated from operations, which included proceeds from forward sales. In addition to the cash on hand, the Group has access to $2.8 billion of committed lines of credit, all of which remain untapped at present.


As of 31 December 2023, the Group’s operating fleet comprised 202 passenger and freighter aircraft with an average age of seven years and one month. SIA added three Boeing 787-10s to its fleet in the third quarter, bringing its operating fleet to 143 passenger aircraft3 and seven freighters. Scoot operated 52 passenger aircraft4, and will take delivery of its first Embraer E190-E2 aircraft in April 2024. The Group has 92 aircraft on order5.

During the third quarter, SIA reinstated services to Chongqing and Xiamen, while Scoot resumed flights to Kunming. With this, the Group operates to 23 destinations in China, compared to 25 points pre-pandemic6. Scoot also resumed operations to Chennai, and restructured its direct flights to Athens and Berlin by operating three-times weekly Singapore-Athens-Berlin services.

For the Northern Summer 2024 operating season (31 March 2024 to 26 October 2024), SIA will ramp up services to Fukuoka and Nagoya from five-times weekly to daily. SIA will serve Milan with four-times weekly direct flights instead of the current twice-weekly operations. SIA will also launch five-times weekly direct flights between Singapore and London (Gatwick) in June 2024, subject to regulatory approvals.

The Group expects to return to pre-pandemic capacity levels within FY2024/25.


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.

Air freight volume is expected to soften in the seasonally weaker January to March quarter, with continued pressure on yields as passenger aircraft bellyhold capacity continues to grow.

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. Its portfolio strategy, with two distinct industry-leading airline brands, gives it flexibility to deploy the right vehicles to the right markets, offering customers more choice and value. The Group will continue to invest in its network, as well as its product and service offerings. It will also leverage digital technologies to enhance revenue generation, and improve operational efficiencies and productivity.





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