16-5-2024 (SINGAPORE) Singapore Airlines Ltd is set to reward its staff with a generous bonus payout amounting to almost eight months of salary, according to a person familiar with the matter. This move comes on the heels of the airline delivering a second consecutive record annual profit, reflecting the robust recovery in the aviation industry.
While Singapore Airlines declined to comment on the specifics of the bonus payout, the amount is understood to be higher than the previous year’s record profit-sharing bonus, which was equivalent to 6.65 months’ pay and a maximum of 1.5 months’ salary as an ex-gratia bonus related to the coronavirus pandemic.
The city-state carrier announced a record S$2.67 billion (US$1.98 billion) annual profit for the fiscal 2023-2024 year, marking a 24% increase from the previous year, according to an exchange filing on Wednesday. Singapore Airlines attributed the strong performance to the healthy demand for flights, driven by a robust appetite for travel and a buoyant cargo sector, which helped offset competitive pressures, higher costs, geopolitical tensions, and economic uncertainty.
Singapore Airlines has been a frontrunner in the aviation industry’s recovery, benefiting from a faster reopening and rebound compared to many of its peers after Covid restrictions were lifted. In March, the airline’s monthly passenger volumes were around 97% of pre-pandemic levels, underscoring the remarkable turnaround.
The substantial bonus payout for Singapore Airlines’ staff mirrors the experience of employees at Emirates, the Gulf carrier that reportedly handed out five months of bonus to its workers after notching up a record annual profit of $5.1 billion. Emirates had also paid out a similar bonus amount the previous year.
Shares in Singapore Airlines rose 0.4% on Thursday, bringing the airline’s year-to-date gains to 4.3%, reflecting investor confidence in the company’s strong financial performance and the broader recovery in the aviation sector.
The generous bonus payout is a testament to Singapore Airlines’ commitment to rewarding its workforce for their contributions to the airline’s success, particularly during the challenging period of the pandemic. As the aviation industry continues to soar, the airline’s decision to share its record profits with employees is likely to boost morale and foster a sense of shared achievement within the company.
Moreover, the substantial bonus highlights the importance of retaining and attracting top talent in the highly competitive aviation industry. By offering competitive compensation packages, Singapore Airlines can position itself as an attractive employer, ensuring it has the skilled workforce necessary to maintain its leadership position in the global aviation market.
