With Singapore Airlines recently having reported its best financial results in history, the company is also rewarding staff in a pretty major way.
Singapore Airlines employees get huge bonuses
Singapore Airlines has revealed that it will pay staff bonuses equal to roughly eight months of salary. This comes in two parts:
- Staff will receive a profit sharing bonus equivalent to 6.65 months of salary, which is based on a longstanding annual profit sharing bonus formula that unions have agreed on
- On top of that, staff will receive an ex-gratia bonus equivalent to 1.5 months of salary, in recognition of their hard work and sacrifice during the pandemic
While senior management will get profit sharing, senior management won’t get the ex-gratia bonus.
It goes without saying that this is a huge bonus for staff, and is something they worked hard for. We recently saw Emirates announce that staff would receive a bonus equal to 24 weeks worth of pay. That was a new record for the company, and for that matter, more or less a record for the industry (well, until now).
In Emirates’ case, any sort of profit sharing schemes are entirely at the company’s discretion. As you can see here, a majority of the profit sharing is based on a contractually agreed upon formula, though the company decided to even be generous beyond that.
Details of Singapore Airlines’ best year in history
Singapore Airlines recently reported its results for the 2022-2023 financial year, which ended on March 31, 2023. The company reported the best financial results in its 76-year history, as the company had a net profit of S$2.16 billion ($1.62 billion). This came after the airline suffered three straight years of losses.
This record profit is pretty noteworthy, since Singapore Airlines still isn’t back to pre-pandemic capacity. For example, the company has only seen passenger capacity rise to 79% of pre-pandemic levels. The airline had a load factor of 85.4%, the highest in history, and an increase of 55.3% compared to the previous year.
Singapore Airlines and its low cost subsidiary Scoot carried 26.5 million passengers during the financial year, which is six times higher than the number of passengers carried the year prior.
These results really show you that limiting capacity and being able to maintain high fares can be good for business (unsurprisingly).
Singapore Airlines had a record year, which is a nice reflection of how international travel demand has recovered post pandemic. To celebrate this, the company is paying employees bonuses worth over eight months of salary. This includes a contractually agreed upon profit sharing bonus, plus an additional bonus to thank them for their hard work.
It’s nice to see employees in the airline industry getting rewarded after a challenging few years. That’s especially true at Singapore Airlines, where the people really make the experience.
What do you make of this Singapore Airlines employee bonus?