On Tuesday, May 16th, Singapore Airlines Group announced it reached an agreement with Boeing
to cancel orders for eight Boeing 737 MAX 8s. Additionally, some changes were made
to the carrier’s widebody deliveries. Let’s look at these adjustments in today’s video.
Singapore Airlines recently announced the company had posted the highest net profit in its 76-year
history. The company also informed the financial market about the latest fleet developments.
During the year, Singapore Airlines took delivery of one Airbus A350-900
in March and one Boeing 787-10 in April 2023. In addition to these widebodies,
the airline also added the 737 MAX 8, which has been refurbished to include the new cabin.
By the end of the first quarter, the company had 195 aircraft in
its operating fleet comprising 188 passenger planes and seven freighters. Additionally,
it has 100 aircraft in its order book, mainly with Boeing, although the Singapore
Airlines Group (including Scoot) also has pending orders with Airbus and Embraer.
Recently, the group reached an agreement with Boeing to adjust its aircraft order
book. This includes swapping three 787-9s for three 787-10s and canceling eight 737
MAX 8s. “These adjustments are in line with the Group’s long-term fleet
renewal strategy and support its projected operational requirements,” the company said.
As of May 16th, the Singapore Airlines Group's order book comprised three Airbus A350s,
15 Boeing 787-10s, 31 777-9s, 13 MAX 8s, and seven A350Fs. Scoot’s order book was made of
three 787-8s, one -9 Dreamliner, 12 A320neos, six A321neos, and nine Embraer E190-E2s.
During the full year 2022/2023, the company had total revenue worth $17.77 billion,
representing a 133.4% increase compared to the previous year.
Total expenditure was $15.08 billion, which led the airline to post a net profit of $2.15 billion.
Despite many airlines still feeling the impact of the COVID-19 crisis,
Singapore Airlines built financial and operational resilience. This
has helped the company ramp up operations and recover financially.
As of March 2023, the group’s passenger capacity reached 79% of pre-COVID levels,
higher than the 58% level for international scheduled services across Asia-Pacific airlines.
During the year, SIA and Scoot collectively carried 26.5 million passengers, up six times
from the previous year. The company’s load factor was 85.4%, the highest in the Group’s history.
Going forward, Singapore Airlines Group believes the demand for air travel remains robust,
underpinned by the recovery in air travel in East Asia. The company registered a
strong pick-up in bookings to China, Japan, and South Korea as travel restrictions disappear.
What do you think about Singapore Airlines' latest aircraft order changes? Why do you
think it canceled its order for more 737 MAX aircraft? Let us know in the comments below.