Singapore Airlines Group (SIA Group) achieved record quarterly revenue in the final three months of 2023 as demand from passengers remained “robust”.
The Asian aviation company saw total revenue reach SG$5.1 billion in its third quarter between October and December – up by 4.9 per cent on the same quarter in 2022. Net profit also rose by the same percentage to SG$659 million for the quarter.
Singapore Airlines has benefited from increased regional traffic following the reopening of major Asian markets including China, Hong Kong and Japan in early 2023.
The carrier reinstated routes to the Chinese cities of Chongqing and Xiamen in late 2023, taking its number of destinations in China back up to 23, compared with 25 pre-Covid routes.
The group also plans to ramp up services from Singapore to the Japanese cities of Fukuoka and Nagoya during the summer 2024 schedule.
European capacity will also increase this summer with Singapore Airlines’ route to Milan being increased from twice weekly to four per week, and direct services between London Gatwick and Singapore due to start in June.
SIA Group said its financial update that demand for travel “remains healthy” and it expects to return to pre-pandemic capacity levels within its next financial year, which starts in April 2024.
“Forward sales continue to be robust, in line with capacity increases in most markets, supported by the demand for leisure travel through the school holidays and Easter peak in March and April 2024,” said the company in a statement.
“Nonetheless, passenger yields continue to come under pressure from increased competition as capacity restoration continues across the industry.
“Heightened geopolitical tensions and economic uncertainty could also weigh on business sentiment and the demand for air travel. High fuel prices and inflationary pressures, as well as supply chain constraints, also present a more challenging operating cost environment globally for airlines.”