On Tuesday, Singapore Airlines Group announced it reached an agreement with Boeing to cancel orders for eight Boeing 737 MAX 8s, plus some changes to its widebody deliveries. The carrier made this statement during the release of its full-year 2022/2023 financial results.
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Today, Singapore Airlines (SIA) announced the company had posted the highest net profit in its 76-year history. The company also informed the financial market about the latest fleet developments.
During the year, Singapore Airlines took delivery of one Airbus A350-900 in March and one Boeing 787-10 in April 2023. In addition to these widebodies, the airline also added 737 MAX 8, which has been refurbished to include the new cabin.
By the end of the first quarter, the company had 195 aircraft in its operating fleet comprising 188 passenger planes and seven freighters. Additionally, it has 100 aircraft in its order book, mainly with Boeing, although the Singapore Airlines Group (including Scoot) also has pending orders with Airbus and Embraer.
Recently, the group reached an agreement with Boeing to adjust its aircraft order book. This includes swapping three 787-9s for three 787-10s and canceling eight 737 MAX 8s. "These adjustments are in line with the Group's long-term fleet renewal strategy and support its projected operational requirements," the company said.
As of May 16, 2023, the Singapore Airlines Group's order book comprised three Airbus A350s, 15 Boeing 787=10s, 31 777-9s, 13 MAX 8s, and seven A350Fs. Scoot's order book was made of three 787-8s, one -9 Dreamliner, 12 A320neos, six A321neos, and nine Embraer E190-E2s.
During the full year 2022/2023, the company had total revenue worth $17.77 billion, representing a 133.4% increase compared to the previous year. Total expenditure was $15.08 billion, which led the airline to post a net profit of $2.15 billion.
Despite many airlines still feeling the impact of the COVID-19 crisis, Singapore Airlines built financial and operational resilience. This has helped the company ramp up operations and recover financially.
As of March 2023, the group's passenger capacity reached 79% of pre-COVID levels, higher than the 58% level for international scheduled services across Asia-Pacific airlines. During the year, SIA and Scoot collectively carried 26.5 million passengers, up six times from the previous year. The company's load factor was 85.4%, the highest in the Group's history.
Going forward, Singapore Airlines Group believes the demand for air travel remains robust, underpinned by the recovery in air travel in East Asia. The company registered a strong pick-up in bookings to China, Japan, and South Korea as travel restrictions disappear.
Recently Singapore Airlines reinstated services to Guangzhou, while Scoot resumed services to Balikpapan and Qingdao. As of March 31, 2023, the group's passenger network covered 109 destinations in 36 countries and territories. Singapore Airlines served 74 destinations and Scoot 58.
For this summer season, the group is expanding its services to China. Scoot resumed its flights to Haikou, Ningbo, and Xi'an in April, Nanning and Shenyang in May, and will resume services to Jinan (July) and Nanchang (August). The low-cost carrier has also increased flight frequencies to several destinations, including Athens, Perth, Barcelona, Frankfurt, and Rome. Finally, Singapore Airlines announced it will suspend services to Vancouver in October 2023, and Scoot will suspend flights to Gold Coast in July.
What do you think about Singapore Airlines' latest aircraft order changes? Let us know in the comments below.
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