The company is still anticipating 100 aircraft, including 13 Boeing 737 MAXs.
Singapore Airlines Group stated on Tuesday that it had achieved a deal with Boeing to cancel orders for eight Boeing 737 MAX 8s and make some adjustments to its widebody deliveries. The carrier said this after announcing its financial performance for the entire fiscal year 2022–2023.
Reduce the order book
In its 76-year existence, Singapore Airlines (SIA) reported today that it has recorded its greatest net profit. The business also updated the financial market on the most recent fleet developments.
Singapore Airlines received one Airbus A350-900 in March and one Boeing 787-10 in April of the following year. The airline further added a 737 MAX 8, which has been upgraded to include the new cabin, to its fleet of widebodies in addition to these.At the conclusion of the first quarter, the firm operated 195 aircraft, including 188 passenger aircraft and seven freighters. The Singapore Airlines Group, which includes Scoot, also has pending orders with Airbus and Embraer, but it also has 100 aircraft in its order book, mostly with Boeing.
The firm and Boeing recently came to an agreement for the group to modify its aircraft order book. In addition to scrapping eight 737 MAX 8s, this involves replacing three 787-9s with three 787-10s. According to the corporation, “These adjustments support its projected operational requirements and are consistent with the Group’s long-term fleet renewal strategy.”
Three Airbus A350s, 15 Boeing 787=10s, 31 777-9s, 13 MAX 8s, and seven A350Fs were among the aircraft under order for the Singapore Airlines Group as of May 16, 2023. Scoot had twelve A320neo aircraft, six A321neo aircraft, nine Embraer E190-E2 aircraft, and one -9 Dreamliner on order.
Taking a look at the business’s financial performance
The business generated $17.77 billion in total sales for the entire fiscal year 2022/2023, an increase of 133.4% from the year before. The airline reported total expenses of $15.08 billion, resulting in a net profit of $2.15 billion.Singapore Airlines developed operational and financial resilience despite the fact that many airlines are still facing the effects of the COVID-19 crisis. This has aided the company’s financial recovery and expansion of operations.
The group’s passenger capacity increased to 79% of pre-COVID levels as of March 2023, surpassing the 58% figure for international scheduled services among Asia-Pacific carriers. Together, SIA and Scoot carried 26.5 million passengers during the year, an increase of six times over the prior year. The load factor for the business was the highest in the Group’s history at 85.4%.
Singapore Airlines Group anticipates that demand for air travel will continue to be strong, supported by the expansion of air travel in East Asia. Due to the removal of travel restrictions, the airline saw a significant increase in reservations for China, Japan, and South Korea.Recently, Scoot restarted flights to Balikpapan and Qingdao, while Singapore Airlines restored service to Guangzhou. The group had 109 destinations in 36 countries and territories in its passenger network as of March 31, 2023. Scoot served 58 locations, whereas Singapore Airlines served 74.The company is extending its services to China for the upcoming summer season. In April, Scoot started flying again to Haikou, Ningbo, and Xi’an. In May, it started flying again to Nanning and Shenyang. In July and August, it will start flying again to Jinan and Nanchang. The low-cost carrier has also boosted the number of flights to a number of locations, including Athens, Perth, Barcelona, Frankfurt, and Rome. Finally, Scoot and Singapore Airlines both stated that they would stop flying to Gold Coast in July and Vancouver in October 2023, respectively.
