LONDON – Singapore Airlines Group (SIA) has announced its Q3 2022/2023 and 9 months 2022/2023 results which shows an strong operating and net profits in both periods as a result of “robust demand” in its network.
Supply and Demand
SIA Group recorded its highest ever quarterly operating profits and net profits in Q3 22/23 and a return to profit for its 9-month results in 22/23 compared to 21/22.
In Q3 22/23, the Singapore-flag carrier achieved an operating profit of $755 million, an increase of 11.4% on the previous quarter. Its net profit was $628 million, up 12.7% on the quarter.
For its 9-months performance, SIA had an operating and net profit of $1,989 million and $1,555 million respectively. This is a move that sees them return to profit compared to 2021/2022 which was still impacted by the COVID-19 pandemic and restrictions.
SIA cited a “robust demand for air travel” for its positive financial results as the profit results coincide with Singapore, its homebase, relaxed its travel restrictions in April 2022.
The Group, which includes Singapore Airlines and budget carrier Scoot, increased its capacity to 80% if pre-pandemic levels at the end of 2022. The group airlines carried over 7 million passengers in the quarter – an increase of 17% compared to the previous.
The Group carried 18.8 million passengers during the nine months ended 31 December 2022, up nine-fold from a year before.
Passenger load factors for the Group improved 0.8 percentage points to 87.4%, the highest for any quarter, on the back of record load factors for both SIA (87.3%) and Scoot (87.8%).
In their statement, SIA also credited both SIA’s and Scoot’s strong performance to “the success of the Group’s portfolio strategy.”
The Group added two Boeing 737-8 MAX aircraft to the SIA fleet, bringing the total size to 133 passenger aircraft. SIA is due to take delivery of an Airbus A350-900 and an additional Boeing 787-10 “Dreamliner” aircraft in Q4 22/23 and will most likely be operational in year 2023/2024.
Elsewhere in the Group, Scoot is planning to increase its fleet with the addition of nine of the new generation of Embraer E-Jets, the E190-E2 aircraft, to its existing fleet of narrowbody Airbus A320s and Boeing 787s.
This is intended to increase the groups presence in the regional markets in Asia, connecting with the mainline routes of the group which benefits from smaller and more efficient fleets.
These are due to slowly enter the operational fleet from 2024 through 2025, bringing its fleet to 64 aircraft.
At the end of 2022, assisted by the relaxing of COVID restrictions in China and other nations in Asia, the Group resintated its network to 111 destinations (76 by SIA and 57 by Scoot, some being common destinations).
With air travel demand increasing in the region, the Singapore Airlines Group announced it expects its positive performance to continue into Q4 with the robust demand and increasing network offering. It stated its forward sales “remained strong” in all markets and all cabin classes.
The investment in fleet renewal and expansion, and an increasing network to pre-pandemic levels, the Group is giving positive outlooks for its future following years of loss and pandemic disruption.
The Group stated about this future that “investment underscores the SIA Group’s confidence in the growing demand for air travel in the region, and supports its wider fleet and network expansion strategy.”