This article first appeared in The Edge Malaysia Weekly on May 22, 2023 - May 28, 2023

Employees of Singapore Airlines Ltd (SIA) are the envy of those in the aviation industry and likely many other salary earners as well. 

The airline, despite going through the turbulence brought about by the Covid-19 pandemic, posted a record high annual profit of S$2.16 billion (RM7.3 billion) for the financial year ended March 31, 2023 (FY2023). Annual revenue more than doubled to S$17.78 billion. 

Because of the stellar set of financial results, SIA is expected to pay a bonus of about eight months’ salary. Its spokesperson said eligible staff would be receiving a profit-sharing bonus equivalent to 6.65 months’ pay, and an ex-gratia bonus of a maximum of 1.5 months in recognition of their hard work and sacrifices during the pandemic. Senior management, however, will not be granted the ex-gratia bonus. 

SIA, together with Scoot, carried 26.5 million passengers in FY2023, six times higher than the 12 months through March 2022. This was achieved without any domestic flights at home. Last month alone, the airline said it flew 1.75 million passengers, up 53% from a year ago.

The eye-popping record earnings reaffirm the view that the aviation industry is on the road to recovery. 

Across the Causeway, there is still a big gap in terms of earnings performance with SIA.  Malaysia Airlines remains loss making, but things seem to be picking up too. 

For 2022, the group recorded an annual net operating profit of RM556 million, while net loss after interest and tax shrank to RM344 million from RM1.65 billion a year ago.

Khazanah Nasional Bhd, the sole owner of Malaysia Airlines, believes that the national carrier’s five-year turnaround plan, which aims to get it to break even this year, is on track.

As part of the plan, Khazanah is committed to injecting up to RM3.6 billion into Malaysia Airlines over the five years through to 2025. The capital injection is certainly not the first as the airline has been financially stressed for more than two decades now. 

Hopefully, this will be the last in a series of financial aid to rescue the national carrier. Taxpayers’ money could then be used for other purposes.

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