News: Following Singapore Airlines, Scoot rewards employees with six months' salary bonuses

Benefits & Rewards

Following Singapore Airlines, Scoot rewards employees with six months' salary bonuses

In addition to attaining record profits, the SIA group accomplished a notable feat by transporting an unprecedented 26.5 million passengers throughout the 2022-23 year.
Following Singapore Airlines, Scoot rewards employees with six months' salary bonuses

Following the SIA group's record profits for the financial year 2022-23, ending on March 31st, 2023, eligible employees of Scoot, a subsidiary of Singapore Airlines Group (SIA), are set to receive a bonus equivalent to six months of their salary.

Earlier this week, Singapore Airlines (SIA) announced a remarkable profit of S$2.16 billion ($1.63 billion), marking a significant reversal from the losses reported in the previous three years, according to a report by Simple Flying. 

In acknowledgment of the employees' unwavering dedication, hard work, and sacrifices that contributed to the airline's success and laid a robust groundwork for the future, Scoot expressed its gratitude by granting great bonus.

The report further disclosed that in addition to the record profits, the SIA group achieved a remarkable milestone by flying a record-breaking 26.5 million passengers during the 2022-23 year. This figure represents a substantial increase of six times compared to the number of passengers carried in 2021-22, as stated in the group's financial report. 

The impressive growth in passenger numbers was accompanied by a significant rise in passenger load factors, which surged from 55.3% to 85.4%. Singapore Airlines contributed to this growth with a load factor of 85.8%, while Scoot achieved an 83.9% load factor.

The remarkable performance of the SIA group was made possible by the relaxation of travel restrictions in several international markets, allowing the airline to successfully restore its network. 

As a result, the SIA group's passenger network, spanning 109 destinations in 36 countries, and its cargo network, encompassing 118 destinations in 38 countries, demonstrated a robust and extensive global reach by the end of the financial year.

Examining Scoot individually, during the fourth quarter of the 2022-23 financial year, the airline operated flights to a total of 58 destinations. However, the airline's network continues to grow, as of April 2023, with operations extended to encompass 65 destinations.

Alongside the SIA group's impressive financial performance, numerous airlines worldwide have experienced highly profitable results in the 2022-23 year. Notably, Dubai-based carrier Emirates recently announced its most profitable year, generating a record profit of $2.9 billion. 

This exceptional recovery follows the airline's reported loss of $1.1 billion in the previous year (2021-22) and represents a remarkable 81% increase in revenue. In combination with Dnata, the Emirates Group achieved an astounding profit of $3 billion.

On the other hand, the situation for employees of Go First has taken a troubling turn. Following the airline's declaration of suspending operations and filing for insolvency resolution on May 2, uncertainty looms over the future of its workforce. Due to its inability to fulfill financial commitments, Go First had to suspend flights until May 5. The matter is scheduled to be addressed by the bankruptcy court on May 4.

Amidst a financial crisis attributed to the grounding of a significant portion of its fleet due to engine unavailability, the airline owned by the Wadia Group ceased operations and initiated insolvency resolution proceedings. In an effort to safeguard its assets, the airline has sought interim measures to prevent lessors from repossessing aircraft and to avert unfavorable actions by the regulatory authority.

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Topics: Benefits & Rewards, Compensation & Benefits, #HRTech, #HRCommunity

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