Still, the company anticipates receiving 100 aircraft, including 13 Boeing 737 MAXs.
In addition to making certain revisions to its widebody deliveries, Singapore Airlines Group reported on Tuesday that it has achieved an agreement with Boeing to cancel orders for eight Boeing 737 MAX 8s. During the announcement of its full-year 2022–2023 financial results, the carrier issued this comment.
reduction of the order book
Singapore Airlines (SIA) declared today that it had recorded its best net profit in all of its 76-year existence. The business has disclosed the most recent fleet developments to the financial market.
Singapore Airlines received two aircraft during the year: a Boeing 787-10 in April 2023 and an Airbus A350-900 in March. The airline also added a 737 MAX 8, which has been upgraded to feature the new cabin, in addition to these widebodies.The company’s operating fleet included 195 aircraft by the end of the first quarter, including 188 passenger aircraft and seven freighters. It also has 100 aircraft on order, mostly from Boeing, however Scoot is part of the Singapore Airlines Group, which also has orders with Airbus and Embraer.
The firm and Boeing recently came to an agreement to modify the order book for aircraft. This involves scrapping eight 737 MAX 8s and replacing three 787-9s with three 787-10s. The business stated that these modifications “are in keeping with the Group’s long-term fleet renewal strategy and support its projected operational requirements.”
The order book for the Singapore Airlines Group included three Airbus A350s, 15 Boeing 787=10s, 31 777-9s, 13 MAX 8s, and seven A350Fs as of May 16, 2023. Three 787-8s, one -9 Dreamliner, twelve A320neos, six A321neos, and nine Embraer E190-E2s were among the aircraft on Scoot’s order list.
Examining the business’s financial performance
The company’s overall revenue for the entire fiscal year 2022/2023 was $17.77 billion, an increase of 133.4% from the year before. The airline reported a net profit of $2.15 billion on total spending of $15.08 billion.Despite the COVID-19 crisis still having an effect on many airlines, Singapore Airlines developed operational and financial resiliency. This has aided the business’s expansion and financial recovery.
The group’s passenger capacity as of March 2023 was greater than the 58% level for international scheduled routes throughout Asia-Pacific airlines, reaching 79% of pre-COVID levels. SIA and Scoot together carried 26.5 million passengers throughout the year, a six-fold increase from the prior year. The company has the greatest load factor in the history of the Group at 85.4%.
The rebound in air travel in East Asia, according to Singapore Airlines Group, will support the demand for flying going forward. As travel restrictions are lifted, the company observed a significant increase in bookings to China, Japan, and South Korea.Singapore Airlines has started operating flights to Guangzhou again, and Scoot started operating flights to Balikpapan and Qingdao. The group’s passenger network included 109 destinations in 36 countries and territories as of March 31, 2023. Scoot traveled to 58 places, whereas Singapore Airlines went to 74.
The organization is extending its services to China for this summer. In April, Scoot began flights to Haikou, Ningbo, and Xi’an; in May, it did the same for Nanning and Shenyang; and in July and August, it will do the same for Jinan and Nanchang. Additionally, the low-cost airline has boosted the number of flights it offers to a number of locations, including Athens, Perth, Barcelona, Frankfurt, and Rome. Finally, Scoot will stop flying to Gold Coast in July, and Singapore Airlines will stop flying to Vancouver in October 2023.