Image Source: Mothership
Singapore Airlines (SIA) has shocked the airline industry by offering a whopping 7.45-month profit-sharing bonus to its staff, after a record S$2.78 billion (US$2.1 billion) net profit for the year ended March 31, 2025. While the payout, while a little less than last year's record 7.94-months bonus, is one of the best in the world's airline sector and reflects SIA's desire to reward its staff for their resilience and hard work.
Key Points:
Historic Profit: SIA's net profit jumped 3.9% to S$2.78 billion, beating expectations, boosted by a one-off S$1.1 billion contribution related to the merger of Air India and Vistara. Group revenue rose 2.8% to an all-time high S$19.5 billion, boosted by strong passenger and cargo demand.
Staff Bonus Bonanza: Employees are to get a 7.45-month bonus, calculated through a long-standing union-approved formula. Although slightly lower than the year before, this payment continues to be a industry leader and an expression of the airline's thanks for its employees' hard work amid a year of fierce competition and increasing expenses.
Dividend and Expansion: The board offered a final dividend of 30 cents a share, taking the year's total to 40 cents. SIA's strategic share in the newly merged Air India places it for expansion in the Indian aviation industry, which is growing fast.
Cautious Outlook: In spite of the astronomical returns, SIA cautioned against headwinds from trade tensions around the world, moving tariffs, and economic volatilities. The airline is keeping a lookout, poised to pivot quickly to maintain its market positioning.
SIA's record profit and blockbuster bonus mark a year of resolve and audacity, paving the way for fresh opportunities amidst global uncertainty.
Sources: Channel NewsAsia, South China Morning Post, Bloomberg
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