BY JOSE PAOLO S. DELA CRUZ
Named the “World’s Best Airline” for the fifth time in the 2023 Skytrax World Airline Awards, Singapore Airlines continues to soar in the post-pandemic era — earning its highest net profit in the past 76 years for the period of April 2022 to March 2023. The airlines further saw a 52.3 percent year-on-year growth, as it serviced 17.4 million passengers from April to September 2023.
If numbers were to tell the story, then Singapore Airlines (SIA) is definitely one for the books.
For one, the group posted a record net profit of SGD 2,157 million from its financial year 2022/23, bouncing back from a net loss of SGD 962 million in the previous year. The group’s operating profit also came in at a record SGD 2,692 million. Altogether, these mark the five-star airlines’ highest net profit in its 76-year history.
Building on a 13-fold increase in passenger volume in 2022, SIA, along with Scoot, collectively transported 17.4 million passengers from April to September 2023, marking a substantial 52.3 percent year-on-year growth.
On top of all these, SIA was also recognized by Skytrax as the “World’s Best Airline” for the fifth time — a recognition of the indomitable spirit and resilience of everyone in the company. “We are deeply appreciative of the strong support from our customers and partners in the aviation industry. We remain committed to delivering and investing in the three pillars of our brand promise — service excellence, product leadership and network connectivity,” starts off Sia Nam Kung, general manager of SIA Philippines.
While these numbers and accolades are cause for celebration, one must also take note of the innovations that paved the way for these positive results. As always, the journey is just as important as the destination.
Waiting on the wings
The pandemic may have slowed down travel to a halt, but it never truly quelled everyone’s desire to go places. And so, when the restrictions were lifted, up, up and away to the four corners of the globe, we all went.
But for SIA, the preparations started even before travel bans were eased. “We were fairly confident that the pandemic would not significantly curtail the desire to travel. So when borders reopened, the pent-up demand for both business and leisure traffic took off and has still not really eased. That is a crucial factor — the demand was always there. We ensured that everyone in the SIA Group was ready for this even when borders were closed,” says Nam Kung.
During the pandemic, the airlines also deployed passenger aircraft on cargo missions. As a result, when customers could already travel, SIA and Scoot were already in place, enabling both to be among the first airlines to resume flights and start sales as soon as Singapore reopened. “That gave us the early mover advantage. We were able to restore around 80 percent of our pre-pandemic capacity as of January 2023, compared to the 54 percent average among airlines in Asia Pacific,” adds the general manager.
Knowing full well that its talented people and resources would be essential to its recovery efforts, SIA also retained most its staff. “We also began to deploy them much earlier, not using them at full capacity initially, allowing us to raise aircraft utilization and staff productivity in an agile manner in tandem with demand,” explains Nam Kung.
Heart for service
Unsurprisingly, improving passenger experience and satisfaction was also at the heart of SIA’s preparations. “Service excellence is deeply ingrained in SIA’s DNA, and our customers are at the heart of everything we do,” Nam Kung adds.
In a bid to further enhance end-to-end customer experience, it also invested in its fleet and launched new narrowbody cabin products, including lie-flat Business Class seats on the Boeing 737-8s in November 2021. Revamped and expanded SilverKris and KrisFlyer Gold lounges also opened their doors in Singapore Changi Airport T3 in May 2022.
SIA also became one of the first airlines to offer enhanced in-flight Wi-Fi access for its passengers starting February 2023. “This was further enhanced when we offered complimentary in-flight Wi-Fi to customers in all cabin classes by July. They only needed to sign up as a KrisFlyer member to enjoy the onboard Wi-Fi,” explains Nam Kung.
Indeed, passengers are the wind beneath this award-winning airlines’ wings. “We worked hard to secure the loyalty and confidence of our customers. During the pandemic, we were one of the first to provide full refunds. We preserved their KrisFlyer membership statuses and extended the expiry date of their miles. We did not abandon them,” he says.
And judging from the numbers SIA reaped, that commitment seems to go both ways.
SIA in the Philippines
In the Philippines, SIA introduced direct flights from Singapore to Cebu earlier this year. “We introduced an enhanced daily direct flight service between Singapore and Cebu, where customers get to enjoy a more convenient flight timing and better connectivity to destinations beyond Singapore,” explains Nam Kung.
The airlines also continue to develop deeper ties with carriers across the globe, as seen in its codeshare partnerships. Recently, it entered a codeshare agreement with Philippine Airlines, which helped SIA bring travelers closer to the Philippines and, at the same time, further grow its flight network.
Based on feedback from customers, travelers from the Philippines enjoy SIA’s convenient flight schedules and its enhanced connectivity to Australia, Europe and the US. Business Class customers traveling to and from Cebu also find comfort in SIA’s full-flat Business Class seats, no matter how long or short their journey may be.
Flying to the future
Expecting to reach 92 percent of passenger capacity pre-COVID levels in December 2023 and a full return to pre-COVID capacity levels from 2024 to 2025, SIA is rapidly expanding its network and services.
“While the demand for air travel is expected to remain healthy leading up to the end of the financial year, significant capacity restoration across the industry, especially in the Asia-Pacific region, could put pressure on passenger yields,” warns Nam Kung. Having said that, the SIA Group is well positioned in this operating environment, even as competition is expected to intensify as more capacity is injected into international routes.
To support the strong demand for air travel to key markets in 2024, SIA will reinstate direct services between Singapore and Barcelona, and increase flight frequencies to pre-pandemic levels across multiple points, and even exceed them in some.
Destinations that will reach or exceed pre-pandemic levels of flight frequencies include Ahmedabad (India), Beijing and Shanghai (China), Copenhagen (Denmark), Da Nang (Vietnam), Darwin, Melbourne, and Perth (Australia), Dubai (the United Arab Emirates), Tokyo-Haneda (Japan), and Seattle and Houston (the United States of America).
“We also recently announced that we will be launching non-stop flights to Brussels in April 2024, increasing the number of European destinations in the SIA network to 13. This reflects our commitment to enhance our connectivity to this key region,” says Nam Kung.
The group also continues to leverage the strength of its portfolio of airlines, and deploys the right vehicles to the right markets, by growing connectivity between SIA and Scoot networks. “We will also continue to invest in industry-leading products and services, and seize revenue growth opportunities, while maintaining cost discipline,” he adds.
Passengers, on the other hand, will also get to enjoy fringe privileges and perks each time they fly SIA. For instance, the airlines’ lifestyle-centric rewards program KrisFlyer is the official Lifestyle Rewards partner for Ed Sheeran’s upcoming tour in Singapore.
SIA Cares
Outside of expanding networks and improving passenger experiences, PeopleAsia’s “Airline of the Year” awardee is also making the world better through its SIA Cares program. “This year is one of the most memorable yet. Along with over 800 overseas-based staff volunteers across more than 50 cities around the world, SIA Philippines gladly volunteered to engage in a local activity as part of a feeding program,” shares Nam Kung.
SIA teams had the opportunity to engage with more than 30 beneficiary organizations in CSR activities that supported underprivileged families, elderly, children and youth with special needs, and the homeless. Apart from this, the airlines raised SGD 2.6 million for Cerebral Palsy Alliance Singapore and SPD, two social service agencies that support communities with special needs in Singapore, as part of its SIA Cares fundraising drive.
Indeed, whether on Skytrax or in its passenger’s hearts, and even in the communities it serves, SIA is number one.
