SIA and Scoot carried 17.4 mil passengers in April-September, up 52.3% y-o-y.

SINGAPORE (Nov 7): Singapore Airlines (SIA) has posted record half-yearly net profit of S$1.44 billion (RM4.97 billion) in the first half ended Sept 30 (1HFY2024), up 26.9% year-on-year, with robust demand for air travel continuing into the Summer travel season, led by the rebound in passenger traffic to North Asia with the full reopening of China, Hong Kong SAR, Japan and Taiwan.

For the period, group passenger load factor (PLF) improved by 5.8 percentage points to 88.8%, the highest ever half-yearly PLF recorded by SIA.

SIA and Scoot carried 17.4 million passengers in the first six months of FY2024, 52.3% higher than a year before while passenger traffic grew 38.0% compared to 1HFY2023, outpacing the capacity expansion of 29.0%.

Passenger traffic and load factors improved across all markets, with the y-o-y traffic growth of 49.0% outpacing the capacity expansion.

However, demand for air freight remained soft due to inventory overhang, as well as geopolitical and macroeconomic headwinds, says SIA.

The cargo load factor fell 8.4 percentage points y-o-y to 52.7% as cargo loads dipped 6.0%, while capacity grew 8.9% mainly due to increased passenger aircraft bellyhold space. Increased competition and softer demand also contributed to the downward pressure on cargo yields, which fell by 46.2% from a year before.

Nevertheless, at 41.8 cents per load tonne-kilometre, cargo yields remained 37.0% above pre-pandemic levels.

As a result, Group revenue rose $745 million or 8.9% y-o-y to $9.16 billion, with the $1.57 billion or 26.3% increase in passenger flown revenue to $7.55 million partially offset by a $1.04 billion or 49.5% decline in cargo flown revenue to $1.06 billion.

On costs, expenditure increased $427 million, up 5.9% y-o-y to $7.61 billion, with the rise in non-fuel expenditure of $840 million, up 18.7% y-o-y, partly offset by a $413 million decrease in net fuel cost, down 15.3% y-o-y.

Net fuel cost fell to $2.28 billion, mainly due to a 29.1% decrease in fuel prices, despite higher volumes uplifted and lower fuel hedging gains.

The 18.7% increase in non-fuel expenditure was within the 19.9% increase in passenger capacity.

Consequently, the group recorded an operating profit of $1.55 billion, $320 million higher than a year before.

For the half-year ended Sept 30, SIA has declared an interim dividend of 10 cents per share, amounting to $297 million. The interim dividend will be paid on December 22 for shareholders as at December 7.