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Singapore Airlines dishes out massive bonuses to staff after record profits

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Singapore Airlines dishes out massive bonuses to staff after record profits

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Staff at Singapore Airlines have been told to prepare for a mighty pay packet this year after a massive year of profits for the company.

Singapore Airlines reported a record annual profit of S$2.67 billion (A$2.97 billion) for the fiscal year 2023-2024, marking a whopping 24 per cent increase from the previous year.

The airline’s performance was announced in a stock exchange filing on Wednesday.

A continued strong demand for air travel and a strong cargo sector have contributed to the airline’s profitability despite challenges such as competitive pressures, rising costs, geopolitical tensions, and economic uncertainties.

Singapore Airlines experienced a rapid recovery and scale-up of operations post-Covid, reaching 97 per cent of its pre-pandemic passenger volume by March.

The significant profits led Singapore Airlines to distribute substantial bonuses to its staff, reflecting a similar practice by Emirates, which awarded its employees five months of bonus following a record profit of $5.1 billion (A$7.6 billion).

Staff are reportedly expected to receive an equivalent to 6.65 months’ pay and a maximum of 1.5 months’ salary of ex-gratia bonus related to the pandemic.

Following the announcement, Singapore Airlines’ stock price increased by 0.4 per cent on Thursday, with a total increase of 4.3 per cent for the year.

Unfortunately, the same can’t be said for Bonza Airlines, which collapsed earlier this month, less than 18 months after launching its first flights.

A court heard over 60,000 customers had been left out of pocket following the collapse of budget airline Bonza.

Analysts say Bonza failed because it did not compete in the all-important Brisbane-Sydney-Melbourne market or what the aviation industry refers to as Australia’s “Golden Triangle”.

This meant the company lost out on the market’s most concentrated money pot.

“The Golden Triangle is so important because this is where most of the action happens and where the money is being made,” Professor Rico Merkert, deputy director at the Institute of Transport and Logistics Studies at the University of Sydney Business School, told NCA NewsWire.

Bonza suffered almost immediate reputational damage as flight delays and cancellations piled up.

The airline started flying passengers in January 2023 and by July, customer complaints were already sweeping through social media.

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