Singapore Airlines (SIA) Achieves its Highest Annual Profit in the Last Fiscal Year, Driven by Strong Demand for Air Travel.

The city-state's flag carrier announced on Wednesday that net profit for the year to the end of March had risen by 24% to a record high of 2.675 billion Singapore dollars (1.98 billion US dollars). The company attributed the increase in profit to the heightened demand for air travel, particularly due to the reopening of borders in North Asia, including China, Hong Kong, Japan, and Taiwan.

The revenue also reached a record high, increasing by 7.0% to SGD 19.01 billion.

The operating profit increased by 1.3% to 2.73 billion Singapore dollars, aided by decreased net fuel costs.

Since the pandemic, inbound travel to Singapore has been steadily recovering. Passenger traffic at Singapore's Changi Airport exceeded pre-pandemic levels in the first quarter of 2024, while air traffic to and from most regions returned to or exceeded 2019 levels.

The passenger volume grew by 27% year-on-year, with the group load factor increasing by 2.6 percentage points to a record high of 88%, according to the airline.

"The aviation industry continues to face challenges, including rising geopolitical tensions, an uncertain macroeconomic environment, supply chain bottlenecks, and high inflation in many parts of the world," explained SIA.

Despite these challenges, demand for air travel remains healthy from April to June, the company added, and expects a strong increase in advanced bookings for North Asia and Southeast Asia.