Air journey demand remained sturdy within the three months to 31 December 2023, led by a restoration in North Asia as China, Hong Kong, Japan and Taiwan totally reopened. SIA and Scoot transported 9.5 million passengers, which is 29.4% greater than the earlier yr. Passenger visitors grew by 19.1%, outpacing the 17.9% improve in capability. Because of this, the group passenger load issue (PLF) improved by 0.8 proportion factors to 88.2%.
FINANCIAL RESULTS OF SIA GROUP
Third Quarter FY 2023/24 – Revenue and Loss
Singapore Airways Group (SIA) monetary outcomes for the third quarter of fiscal yr 2023/24. are summarized as follows:
Monetary outcomes of the group | 3rd 1 / 4
FY2023/24 (million {dollars}) |
3rd 1 / 4
FY 2022/23 (million {dollars}) |
Higher/ (Worse)
(%) |
9 months
FY2023/24 (million {dollars}) |
9 months
FY 2022/23 (million {dollars}) |
Higher/ (Worse)
(%) |
Complete revenue | 5,082 | 4,846 | 4.9 | 14,244 | 13,263 | 7.4 |
Complete expenditures | 4,473 | 4,091 | (9.3) | 12,082 | 11,274 | (7.2) |
Internet gas price | 1,454 | 1,333 | (9.1) | 3,737 | 4,029 | 7.2 |
Gasoline price (earlier than safety) | 1,540 | 1,529 | (0.7) | 4,068 | 4,642 | 12.4 |
Acquire from gas safety | (87) | (196) | (55.6) | (331) | (613) | (46.0) |
Non-fuel prices | 3,019 | 2,758 | (9.5) | 8,345 | 7,245 | (15.2) |
Revenue from enterprise | 609 | 755 | (19.3) | 2,163 | 1,989 | 8.7 |
Internet revenue | 659 | 628 | 4.9 | 2,100 | 1,555 | 35.0 |
Revenues elevated by $236 million (+4.9% YoY) to a quarterly file of $5,082 million, crossing the $5,000 million mark for the primary time within the Group’s historical past. Income from passenger flights elevated by USD 398 million (+10.6%) to USD 4,165 million, regardless of a 7.4% decline in passenger yield. Revenues from freight transportation fell by $303 million (-35.1%) to $559 million. Whereas cargo loadings had been up 3.9% resulting from sturdy year-end demand from the e-commerce section, cargo yields had been 37.4% decrease than final yr. Nonetheless, yields remained 32.1% above pre-pandemic ranges1.
Bills elevated by USD 382 million (+9.3%) to USD 4,473 million. This features a $261 million (+9.5%) improve in non-fuel prices and a $121 million (+9.1%) improve in web gas prices. The rise in web gas price was primarily resulting from larger volumes elevated (+$176 million) and decrease gas hedging positive factors (+$109 million), partially offset by a 6.6% lower in gas costs (-$114 million). The rise in non-fuel prices was in keeping with a rise in whole passenger and cargo capability of 11.1%.
Because of this, the Group recorded an working revenue of USD 609 million within the third quarter, a lower of USD 146 million (-19.3%) in comparison with the earlier yr. The Group’s web revenue elevated by USD 31 million (+4.9%) to USD 659 million. That is primarily resulting from decrease tax bills (+124 million USD)2share of revenue vs. share of lack of associates of prior yr (+$35 million), extra out there plane, spare elements and spare engines over lack of prior yr (+$21 million), larger web curiosity revenue (+$11 million) , and partially neutralized by decrease working revenue (-146 million {dollars}).
April to December 2023 – Revenue and loss
Group income for the 9 months to December 2023 rose by $981 million (+7.4%) to a file $14,244 million. This was pushed by a rise in passenger income of USD 1,969 million (+20.2%), partially offset by a decline of USD 1,342 million (-45.3%) in cargo income. Bills elevated by $808 million (+7.2%), consisting of a rise of $1,100 million (+15.2%) in non-fuel prices and a lower of $292 million (-7.2%) ) in web gas prices. Internet gas prices decreased to $3,737 million, primarily resulting from a 22.0% lower in gas costs (-$1,186 million) partially offset by larger quantity will increase (+$734 million) and decrease gas hedging positive factors (+$282 million) ).
The Group’s working revenue elevated by USD 174 million (+8.7%) year-on-year to a file USD 2,163 million.
The Group’s nine-month web revenue elevated by USD 545 million (+35.0%) year-on-year to a file USD 2,100 million, surpassing the USD 2,000 million mark for the primary time. That is primarily resulting from higher working efficiency (+USD 174 million), web curiosity revenue in comparison with web finance prices (+USD 233 million) and share of revenue in comparison with share of losses of the related corporations within the earlier yr (+USD 122 million) .
Stability sheet
As at 31 December 2023, the Group’s fairness was USD 15.6 billion, a lower of USD 4.3 billion in comparison with 31 March 2023. This was because of the partial redemption of the June 2021 Obligatory Convertible Bonds (MCBs). .within the quantity of USD 5.1 billion, together with gathered yield. After the redemption, 25% of the MCBs issued in June 2021 stay excellent. Complete debt decreased by USD 1.6 billion to USD 13.7 billion, primarily resulting from compensation of loans. Because of this, the Group’s debt-to-equity ratio elevated from 0.77 instances to 0.88 instances.
Money and financial institution balances decreased by USD 5.8 billion to USD 10.5 billion, ensuing from redemption of MCBs, compensation of loans and cost of dividends. This was partially offset by $3.7 billion of web money generated from operations, which included proceeds from ahead gross sales. Along with money available, the Group has entry to dedicated credit score strains of USD 2.8 billion, all of that are presently undrawn.
FLEET AND NETWORK DEVELOPMENT
As of December 31, 2023, the Group’s operational fleet consisted of 202 passenger and cargo plane with a mean age of seven years and one month. SIA added three Boeing 787-10s to its fleet within the third quarter, bringing the working fleet to 143 passenger plane3 and 7 freighters. Scoot operated 52 passenger plane4and can take supply of its first Embraer E190-E2 plane in April 2024. The group has 92 plane on order5.
Through the third quarter, SIA reinstated providers to Chongqing and Xiamen, whereas Scoot resumed flights to Kunming. On this means, the Group operates at 23 locations in China, in comparison with 25 factors earlier than the pandemic6. Scoot additionally resumed flights to Chennai and restructured its direct flights to Athens and Berlin by working Singapore-Athens-Berlin thrice per week.
For the 2024 northern summer season working season (March 31, 2024 to October 26, 2024), SIA will improve providers to Fukuoka and Nagoya from 5 instances per week to each day. SIA will serve Milan with direct flights 4 instances per week as an alternative of the present twice weekly operations. SIA will even launch direct flights 5 instances per week between Singapore and London (Gatwick) in June 2024, topic to regulatory approvals.
The group expects to return to pre-pandemic capability ranges inside FY 2024/25.
APPEARANCES
Demand for air journey stays wholesome within the final quarter of FY 2023/24. and the primary quarter of FY 2024/25. Ahead gross sales stay sturdy, in keeping with capability will increase in most markets, supported by demand for leisure journey throughout the college holidays and Easter peak in March and April 2024.
Regardless of this, passenger revenues stay below stress from elevated competitors as capability renewal continues throughout the trade. Heightened geopolitical tensions and financial uncertainty may additionally have an effect on enterprise sentiment and air journey demand. Excessive gas costs and inflationary pressures, in addition to provide chain constraints, additionally current a more difficult working price surroundings globally for airways.
Air cargo volumes are anticipated to melt within the seasonally weaker January-March quarter, with continued stress on yields as passenger plane capability continues to develop.
SIA Group will handle these headwinds by being adept at matching capability with demand, staying alert to income and development alternatives, and sustaining price self-discipline. Its portfolio technique, with two completely different main airline manufacturers, provides it the flexibleness to position the correct automobiles in the correct markets, providing prospects extra selection and worth. The group will proceed to spend money on its community, in addition to in its product and repair providing. It is going to additionally leverage digital applied sciences to extend income era and enhance operational effectivity and productiveness.