Singapore Airlines Ltd has announced that its employees will receive a bonus equivalent to around eight months of salary following the company’s record annual profit. The airline’s spokesperson attributed this achievement to a long-standing annual profit-sharing bonus formula agreed upon with staff unions.
The group, which includes budget airline Scoot, reported an annual net income of $1.6 billion. The profit-sharing bonus, equivalent to 6.65 months of salary and a maximum of 1.5 months’ ex-gratia bonus, will be given to eligible employees as recognition for their dedication and sacrifices during the pandemic. The spokesperson highlighted that this gesture reflects the employees’ hard work and the pay cuts they endured amid the pandemic.
Notably, senior management will not receive additional ex-gratia bonuses, as the bonus structure is based on the established profit-sharing formula. Singapore Airlines shared positive news on Tuesday, stating healthy forward sales across all cabin classes, particularly to South Korea, Japan, and China, which led to a 1.2% increase in the company’s shares.
The airline had previously reached an agreement with pilots in September 2020, resulting in pay cuts of up to 60% to prevent layoffs for 400 employees. Singapore Airlines incurred significant losses of $2.75 billion during the 2020-2022 financial years due to the impact of COVID-19. However, by March 2023, passenger capacity had recovered to 79% of pre-COVID levels.
The airline attributed its record financial performance to strategic initiatives, proactive preparation during border closures, and the hard work and sacrifices of its employees.
In the year 2023, Singapore Airlines and Scoot transported 26.5 million passengers, six times more than the previous 12 months through March 2022, with passenger capacity reaching 79% of pre-pandemic levels in March.
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