Today, Singapore Airlines Group (SIA Group) announced it had posted its highest-ever half-year operating profit. The Group, which includes Singapore Airlines and Scoot, posted a financial-year first-half (April - September) operating profit of SGD$1.234 billion ($876.1 million) and a net profit of SGD$927 million ($658 million).

To make that profit, Singapore Airlines (SIA) and Scoot carried 11.4 million passengers in 1H FY2022/23, a massive thirteen times what they carried in the same period last year. That resulted in passenger revenues of SGD$5.98 billion ($4.25 billion), and with capacity tightly managed, the load factor soared to 83% compared to 16% in 2021. Cargo revenue increased by 12%, reaching SGD$2.1 billion ($1.49 billion), and total group revenue was SGD$8.416 billion ($5.975 billion). The group's aircraft fuel bill (before hedging) hit SGD$3.1 billion ($2.2 billion).

Both SIA and Scoot are doing well

Scoot Pikachu jet
Photo: Scoot 

Looking individually, SIA carried 8.23 million passengers and Scoot 3.17 million in the six months ending September 30th. SIAs load factor was 84.6%, while Scoot has some ground to make up with a 76% load factor. In the second quarter, SIA added twice-weekly services to Beijing and a weekly to Shenzhen in China. Scoot also took advantage of relaxed rules in Japan, adding five times weekly flights to Osaka and services to Nanjing and Fuzhou in China. SIA is now operating to 74 destinations, Scoot to 48, and the cargo network encompasses 107 ports.

SIA and Scoot have earned record profits because they jumped out of the blocks immediately after the Singapore Government fully reopened to vaccinated travelers in April 2022. With no domestic market, they had to quickly ramp up international services to whichever markets were open. This was when two major markets, China and Hong Kong, turned themselves into no-go zones as far as travel was concerned and have still not progressed very far from that point.

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The spare aircraft are ready

Singapore Airlines Aircraft in Australian desert storage
Photo: Getty Images

The SIA Group also moved quickly to repatriate their fleets from the baking, red-dirt Australian desert storage facility in Alice Springs. At the end of September, SIA was operating 131 passenger aircraft and seven freighters, while Scoot had 55 aircraft in the air and earning money. Despite hitting new records in the first half, SIA has 27 aircraft still listed by ch-aviation.com as inactive, with Scoot showing 12 on the ground. SIAs idle aircraft include seven Airbus A380s, 15 Boeing 777s and one 787-10, and Scoot has 11 A320-200s and one Boeing 787-8 not in operation.

By the end of September, SIA Group had returned to an average of 68% of pre-pandemic levels, which suggests the management and planners are excellently matching capacity to demand, leading to high load factors and profits. With Hong Kong leaving the entry door slightly ajar, all that remains is for China to rejoin global aviation, and both SIA and Scoot will be back at 2019 levels. They have the aircraft on the sidelines waiting to return, the people in place due to proactive retention plans and the cash to make it all happen.

Both airlines are in a good position for the second half of their financial year, particularly with the peak Lunar New Year period on their radar. SIA Group expects demand will increase in Hong Kong, Taipei and Japan, but it does see some clouds on the horizon to offset this rosy outlook. It says that high fuel prices, inflationary pressures, geopolitical issues and the risk of a global recession remain a concern beyond the Lunar New Year period.

What do you think of Singapore Airlines and how they are recovering from the pandemic?

  • Singapore Airlines Airbus A350-941 (2)
    Singapore Airlines
    IATA/ICAO Code:
    SQ/SIA
    Airline Type:
    Full Service Carrier
    Hub(s):
    Singapore Changi Airport
    Year Founded:
    1972
    Alliance:
    Star Alliance
    CEO:
    Goh Choon Phong
    Country:
    Singapore