Singapore Airlines to pay staff over 7 months’ bonus, warns of Trump’s tariffs hurting demand
The carrier’s cautious outlook emerged despite full-year profit beating estimates
Singapore Airlines Ltd. will reward employees with a profit-sharing bonus worth more than seven months after delivering full-year net income of S$2.78 billion (US$2.1 billion) that beat analyst estimates.
Employees will be paid 7.45 months’ bonus, lower than the 7.94 months received a year ago, chief executive officer Goh Choon Phong said on Friday.
The smaller bonus payout comes as Singapore Airlines on Thursday warned that tariff and trade tensions on top of broader economic and geopolitical uncertainties could hurt demand for passenger and cargo flights.
“The global airline industry faces a challenging operating environment,” the airline said in a statement. The growing challenges “may impact consumer and business confidence, potentially affecting both passenger and cargo markets”, adding it remained vigilant to adapt to changing market conditions.
The company’s net income rose 3.9 per cent to S$2.78 billion (US$2.1 billion) in the year ended March 31, higher than analyst estimates for S$2.4 billion. Revenue edged 2.8 per cent higher to a record S$19.5 billion, topping expectations for S$19.3 billion.
Singapore Airlines’ muted final quarter underscores the uncertainty hanging over the carrier for the year ahead. While the airline had been confident about robust travel demand, US President Donald Trump’s ever-changing policies have hurt consumer sentiment and upended global trade flows.