By Katrina Nicholas
(Bloomberg) — Singapore Airlines Ltd. will reward its employees with a bonus payout worth nearly eight months’ salary, a person familiar with the matter said, after the company posted a record annual profit for the second consecutive year.
The payout is actually higher than last year’s high in Singapore Airlines’ profits, which resulted in a profit share of 6.65 months’ salary and a pandemic-related special bonus of a maximum of 1.5 months’ salary.
Singapore Airlines declined to comment.
The city-state’s airline posted a record annual profit of 2.67 billion Singapore dollars ($1.98 billion) in the 2023-2024 financial year, up 24% from the previous year, according to a stock exchange filing on Wednesday. Short-term demand for flights remains good as strong travel appetite and a buoyant cargo sector helped offset competitive pressures, higher costs, geopolitical tensions and economic uncertainty.
Singapore Airlines benefited from a faster reopening and recovery after the lifting of Covid restrictions compared to many of its competitors. Monthly passenger volumes in March were around 97% of pre-pandemic levels.
The windfall for Singapore Airlines employees mirrors the experience of staff at Emirates, which reportedly paid its employees five months’ bonuses after posting a record annual profit of $5.1 billion. The Gulf airline also paid out a similar amount last year.
Singapore Airlines shares rose 0.4 percent on Thursday, bringing the company’s gain this year to 4.3 percent.
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