World Wide
Singapore Airlines Sets New Benchmark with Record 7.94-Month Salary Bonus
Singapore Airlines rewards staff with up to 7.94 months of salary as bonus after a record $2.0 billion profit year.
Key Takeaway
- Singapore Airlines announces a record bonus of 7.94 months' salary for staff after a net profit of $2.0 billion USD.
- The airline's financial success highlighted by a 37.6% increase in passengers and revenue rise to S$19 billion.
- SIA's bonus significantly surpasses industry peers, setting a new benchmark in aviation profit-sharing practices.
Record Profit Sharing
Singapore Airlines Ltd. (SIA) has announced a significant profit-sharing bonus for its staff, including pilots, following a year of record earnings. The airline's employees are set to receive a bonus equivalent to 7.94 months of their salary, an increase from the previous year's 6.65 months, with some staff also receiving an additional 1.5 months for their efforts during the Covid-19 pandemic. This decision comes after SIA reported a net profit of S$2.675 billion ($2.0 billion USD) for the financial year ending March 31, 2024, marking the best financial results in its 77-year history.
Financial Milestones
The profit-sharing bonus is based on a long-standing formula agreed upon with staff unions, reflecting the airline's commitment to rewarding its employees for their contributions. SIA's financial success was driven by a healthy demand for flights, with the airline carrying 36.4 million passengers, a 37.6% increase over the previous year. Despite a slight decrease in revenue per available seat kilometer, the airline improved its average load factor to 88% and increased its revenue to S$19 billion, a 7% rise from the previous year. However, cargo revenue fell by 41.2% compared to the previous year, a trend consistent with the industry as airlines restored passenger capacity.
Industry Comparisons
Singapore Airlines' profit-sharing initiative sets a new benchmark in the aviation industry, with bonuses significantly higher than those of other major airlines. For comparison, Emirates recently announced a bonus equivalent to 20 weeks of pay for its staff, while Delta Air Lines in the United States offered its employees a 10.4% profit-sharing bonus. These figures highlight the exceptional nature of SIA's bonus, which increases staff salaries by over 60% on an annual basis, showcasing the airline's strong financial performance and generous compensation policies.
Management Quotes
- Goh Choon Phong, CEO of Singapore Airlines:
"Singapore Airlines Ltd. staff, including pilots, may get a profit-sharing bonus of 7.94 months."
