When travelling restrictions eased, SIA resumed flying quickly and capitalised on the pent-up demand in travel by mounting more flights and charging higher fares, leaving in its jet stream competitors that did not enjoy a similar level of state backing.
Flag carrier Singapore Airlines (SGX:C6L
) is on track to finish the current fiscal year with yet another record as it soars back from pandemic-induced losses. However, earnings for the coming FY2025 ending March 2025 are seen to be lower as it no longer enjoys the extraordinary yields willingly paid by passengers eager to fly again after more than two years of pandemic restrictions.
In 1HFY2024 ended Sept 30, the group’s earnings rose 26.9% y-o-y to $1.44 billion and UOB Kay Hian’s Roy Chen is forecasting FY2024 ending March 2024 earnings to reach $2.72 billion. SIA achieved robust earnings growth due to strategic financial support during the pandemic. Since 2020, shareholders led by Temasek Holdings, have injected $15 billion to ensure operational readiness, retaining employed pilots, cabin crew and mechanics.
