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SINGAPORE Airlines (SIA) recorded a record net profit of IDR35.56 trillion or S$2.8 billion (exchange rate of IDR12,700 per Singapore dollar) in 2024. Southeast Asia’s largest airline gave its employees a bonus equivalent to 7.45 months’ salary.
The record profit was driven by a non-cash accounting gain of S$1.1 billion from the merger of Air India and Vistara, it said in a statement to the Singapore Stock Exchange on May 15. Group revenue also rose 2.8% from a year earlier to a record S$19.54 billion, driven by strong demand for air travel and increased cargo.
Responding to questions from The Straits Times on staff bonuses, SIA said it can confirm that employees will receive full bonuses for 2024/25 for their dedication and hard work.
“This is based on the old formula agreed with our unions,” SIA said, without disclosing the formula and bonus details. However, the bonus of 7.45 months was slightly lower than the previous year’s 7.94 months.
The merger of Air India and Vistara was completed in November 2024. Prior to the merger, Vistara was jointly owned by Tata Sons and SIA. After the merger, SIA held a 25.1% stake in Air India, giving it a direct stake in India’s fast-growing aviation market.
SIA and its low-cost carrier Scoot also carried a record 39.4 million passengers, an increase of 8.1% over the same period last year. Despite carrying more passengers, passenger yield – the amount earned per passenger for every kilometer flown – fell 5.5% to 10.3 cents per revenue passenger kilometer.
“This comes amid increased competition due to capacity additions across the industry. Passenger traffic growth of 6.4% also lagged behind capacity expansion of 8.2%.” SIA management said.
Meanwhile, flown cargo revenue increased by S$94 million or 4.4%, driven by strong demand for e-commerce and perishables, as well as a cushion from disruptions in ocean freight.
SIA’s Board of Directors recommended a final dividend of 30 sen per share for the full year. This includes an interim dividend of 10 sen per share payable on December 11, 2024.
The total dividend for the year will be 40 sen per share, representing a total dividend payout of S$1.2 billion for the year. The final dividend, subject to shareholder approval, will be paid on 27 August 2025.
SIA’s CEO is confident that the airline can overcome the challenges in 2025 after a turbulent 2024. SIA offers special fares, bonus miles for SG60 celebrations
Looking ahead, the global aviation industry faces a challenging operating environment amid changing tariff policies and trade tensions, economic and geopolitical uncertainties, and ongoing supply chain constraints, SIA said.
“These factors may impact consumer and business confidence, potentially impacting passenger and cargo markets,” SIA concluded. [sources/photo special]
