Singapore Airlines on Wednesday (May 15) posted a record annual profit and raised its dividend, reflecting strong travel demand in North Asia, but flagged geopolitical woes, supply chain snags and fierce competition as challenges facing the sector.
Singapore’s flag carrier also highlighted strength in cargo demand towards the end of the financial year amid a shift to air freight by various shippers due to security concerns in the Red Sea region.
“Cargo demand strengthened towards the end of FY2023/24 on the back of healthy e-commerce demand, resilient and growing segments such as perishables and concerts,” the company said.
Singapore Airlines said the demand for air travel remained “healthy” in the first quarter of fiscal 2024-2025 on the back of a pick up in forward bookings in North and South East Asia.
The carrier reported annual net profit of S$2.68 billion (US$1.99 billion) for the fiscal ended March 2024, compared with S$2.16 billion a year ago.
It also declared a final dividend of S$0.38 apiece, higher than the S$0.28 a year ago.
