Singapore Air To Pay Staff A Bonus Of Around Eight Months’ Salary After Record Annual Profits

Singapore Airlines Ltd. is making waves in the aviation industry with its extraordinary gesture towards its employees. In recognition of their hard work and sacrifices during the challenging pandemic period, the airline has announced a bonus that is sure to leave staff members beaming. The bonus, equivalent to approximately eight months' salary, consists of a profit-sharing component and an ex-gratia bonus. Eligible staff will receive a profit-sharing bonus of 6.65 months' pay, ensuring that their dedication and commitment are financially acknowledged. Additionally, a maximum of 1.5 months' salary will be awarded as an ex-gratia bonus, further demonstrating the airline's appreciation for their employees. Notably, senior management will not receive the additional ex-gratia bonus, emphasizing the focus on frontline workers and their contributions. "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," explained a spokesperson for the airline. This commitment to a fair and established system underscores the airline's dedication to fostering a positive relationship with its employees and unions. The record-breaking annual profit of S$2.16 billion ($1.62 billion) reported by Singapore Airlines undoubtedly played a significant role in facilitating this remarkable bonus. The airline's success is evident, with healthy forward sales across all cabin classes and robust bookings to popular destinations like China, Japan, and South Korea. Share prices of Singapore Airlines surged by 1.2% following this news, reflecting the positive market response to the company's achievements. Despite the severe impact of the pandemic on the aviation industry, Singapore Airlines and its budget offshoot, Scoot, managed to carry a remarkable 26.5 million passengers in the last year. This figure is a significant six-fold increase compared to the previous 12 months, highlighting the gradual recovery and restoration of travel demand. By March, passenger capacity had already reached an impressive 79% of pre-Covid levels, a promising sign of the industry's resurgence. In comparison to its competitors, Singapore Airlines' achievements are truly noteworthy. In April alone, the airline flew 1.75 million passengers, marking a staggering 53% increase compared to the same month last year. Meanwhile, rival airline Cathay Pacific Airways Ltd. still has ground to cover, as its revenue remains approximately half of pre-pandemic levels. Singapore Airlines' exceptional bonus payout demonstrates the company's commitment to its employees and recognizes their immense contributions during these unprecedented times. It serves as a beacon of hope for the aviation industry and a testament to the resilience and determination of the airline and its workforce.