Singapore Airlines to pay staff bonus of eight months' salary; Here's why

After reporting a record annual profit, Singapore Airlines will reward staff with a bonus equal to almost eight months' salary.

In appreciation for their dedication and efforts throughout the pandemic, eligible employees will receive a profit-sharing incentive equal to 6.65 months' pay and a maximum of 1.5 months' income as an ex-gratia bonus, according to an airline official. There won't be an additional ex-gratia bonus for senior executives.

“The bonus for Singapore Airlines’ employees is based on a long-standing annual profit-sharing bonus formula that has been agreed with our staff unions,” the spokesperson said.

The city-state's national airline on Tuesday announced a net profit of S$2.16 billion ($1.62 billion) for the fiscal year that ended on March 31. It also stated that forward sales are strong in all cabin classes, with bookings to China, Japan, and South Korea leading the way. Shares of Singapore Airlines increased by 1.2% on Thursday.

Passenger capacity increased to 79% of pre-Covid levels in March. Singapore Airlines and its low-cost subsidiary Scoot transported 26.5 million passengers in the year, which is six times more than the 12 months to March 2022.

Singapore Air reported on Monday that it flew 1.75 million passengers in April, a 53% increase over the same month last year. With last year's income still being just about half of pre-pandemic levels, Hong Kong rival Cathay Pacific Airways has a long way to go before reaching similar heights.