Singapore Airlines Reports Strong Profits, Big Bonuses, Uncertainty

Singapore Airlines has just reported its results for the 2024-2025 financial year, and they’re good, though the airline notes the uncertainty that the current environment is causing. Employees are also being rewarded with huge bonuses.

Details of Singapore Airlines’ strong financial results

Singapore Airlines reported its results for the past financial year, which ended on March 31, 2025. The company reported a record S$2.8 billion net profit. The catch is that S$1.1 billion of that was a one-off non-cash accounting gain from the merger between Air India and Vistara (Singapore Airlines has long been a Vistara shareholder, and has a stake in the new, combined company).

The company’s actual operating profit was S$1.7 billion, down significantly compared to the S$2.7 billion profit the year before, given the pressure that we’ve seen on yields.

Just to compare some year-over-year numbers for Singapore Airlines and its low cost subsidiary Scoot:

• The average load factor was 86.6%, a 1.4% decrease over the year prior
• The airline group carried 39.4 million passengers, an 8.1% increase over the year prior
• Revenue for the year was S$19.5 billion, a 2.8% increase over the year prior
• Revenue per available seat kilometer was S$0.09, a 6.3% decrease compared to the year prior

What we’re seeing with Singapore Airlines is in line with what we’re seeing in the rest of the industry. A couple of years back, we saw great yields for international travel, given that airlines hadn’t fully restored capacity to pre-pandemic levels.

But as we see more capacity added back, yields and load factors are suffering somewhat, which isn’t surprising. Still, the airline is achieving a solid profit.

Singapore Airlines employees get huge bonuses

Singapore Airlines has revealed that it will pay staff bonuses equal to roughly 7.45 months of salary. This profit sharing is based on a longstanding formula that has been agreed upon with unions.

For what it’s worth, for the previous year, the airline paid staff a bonus equal to 7.94 months of pay, so this bonus isn’t quite as generous as that, but is still huge. Meanwhile the year before that, the airline paid staff a bonus equal to 6.65 months of salary, in addition to an ex-gratia bonus equal to 1.5 months of salary, in recognition of their hard work and sacrifice during the pandemic.

It goes without saying that this is a huge bonus for staff, and is something they worked hard for. In this case, this is also a bonus that the staff are contractually entitled to, so it’s pretty wild to think that frontline employees could regularly be getting bonuses that increase their salary by well over 60% on an annual basis. I guess it shows you in what a good situation some airlines are.

Singapore Airlines is continuing to set a record with its profit sharing percentages. We recently saw Emirates announce that staff would receive a bonus equal to 22 weeks worth of pay. That’s not based on any formula, but rather is at management’s discretion.

Then you have Delta, which has the most profit sharing among US airlines, in absolute terms. Employees there recently received 10% profit sharing of their overall pay. That’s of course great by US airline standards, but it’s not a 60%+ bonus on salary, as we’re seeing at Singapore Airlines.

Singapore Airlines warns of uncertain outlook

While Singapore Airlines’ past financial year has been good, the carrier’s outlook isn’t all that optimist. The company emphasizes that it’s in a “strong position to navigate global trade and macroeconomic uncertainties due to its robust foundations and long-term strategic investments.” As the airline explains:

The global airline industry faces a challenging operating environment amid changing tariff policies and trade tensions, economic and geopolitical uncertainties, and continued supply chain constraints. These factors may impact consumer and business confidence, potentially affecting both passenger and cargo markets.

The Group remains vigilant, closely monitoring developments and prepared to respond swiftly to market conditions. The Group will rely on its strong foundations, including dual brand portfolio airline, well-diversified global network, a robust balance sheet, talented and dedicated workforce, as well as industry-leading digital capabilities to navigate these challenges.

Shifts in global passenger and trade flows may also open new opportunities for the Group, with its well-diversified global passenger and cargo network. Its hub in Singapore offers a strategic advantage, given its position at the centre of growing economies in South East Asia, South Asia, and the wider Asia-Pacific region, and the Group’s strong presence in these markets.

Bottom line

Singapore Airlines has reported a record profit for the past year, though that’s only because of a one-time accounting gain from the Air India and Vistara merger. In reality, the carrier’s operating profit is down quite a bit from the previous year, due to a drop in yields.

Singapore Airlines’ financial results are still great, but as you’d expect, airlines are under more pressure than in the past. As the airline has added more capacity, yields and load factors have declined a little. The outlook isn’t that great either, with the company warning of uncertainty.

Fortunately employees at the airline are being rewarded for these results, and are receiving bonuses equal to 7.45 months worth of pay. This is just a little less than the bonus they received the year prior. It’s great to see how well staff are being rewarded, as these bonuses now make up a large part of compensation at the airline.

What do you make of Singapore Airlines’ financial results, and these employee bonuses?