Singapore Airlines pays eight months' salary as bonus to its staff
Published: May 19, 2023, 07:03 IST | Updated: May 19, 2023, 07:03 IST
Singapore Airlines flight.
Singapore Airlines Ltd has announced that its staff will be receiving around eight months of salary as a bonus after the company posted a record annual profit.
This is the highest profits that the company has posted in its 76-year history, reported Bloomberg.
That's thanks to "a long-standing annual profit-sharing bonus formula that has been agreed with our staff unions," an airline's spokesperson said while speaking to Insider.
The group, which also has budget airline Scoot under its umbrella, posted an annual net income of $1.6 billion, according to Bloomberg.
A profit-sharing bonus, which will be equivalent to their salary for 6.65 months and a maximum of 1.5 months’ pay of ex-gratia bonus, will be paid to the eligible staff as a recognition for their hard work and sacrifices made by them during the pandemic, said a spokesperson for the airline.
This is the highest profits that the company has posted in its 76-year history, reported Bloomberg.
That's thanks to "a long-standing annual profit-sharing bonus formula that has been agreed with our staff unions," an airline's spokesperson said while speaking to Insider.
The group, which also has budget airline Scoot under its umbrella, posted an annual net income of $1.6 billion, according to Bloomberg.
A profit-sharing bonus, which will be equivalent to their salary for 6.65 months and a maximum of 1.5 months’ pay of ex-gratia bonus, will be paid to the eligible staff as a recognition for their hard work and sacrifices made by them during the pandemic, said a spokesperson for the airline.
The gesture of goodwill is "in recognition of our employees' dedication, hard work, and sacrifices, including pay cuts during the pandemic," the spokesperson stated.
Additional ex-gratia bonuses will not be paid to the senior management. “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 stated.
The carrier on Tuesday stated that its forward sales across all cabin classes have been healthy, headed by bookings made to South Korea, Japan and China. The shares of Singapore Airlines increased by 1.2 per cent on Thursday.
In September 2020, the pilots of Singapore Airlines had agreed to take pay cuts up to 60 per cent in a deal which had saved 400 employees from being sacked, as reported by a Singaporean newspaper.
During the 2020-2022 financial years, losses worth $2.75 billion were reported by Singapore Airlines as the industry was hit by COVID-19, reported Bloomberg.
In September 2020, the pilots of Singapore Airlines had agreed to take pay cuts up to 60 per cent in a deal which had saved 400 employees from being sacked, as reported by a Singaporean newspaper.
During the 2020-2022 financial years, losses worth $2.75 billion were reported by Singapore Airlines as the industry was hit by COVID-19, reported Bloomberg.
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However, by March this year, the airline group's passenger capacity was back to 79 per cent of pre-COVID levels, the company stated.
"The SIA Group's record financial performance for FY2022/23 is a testament to its proactive strategic initiatives, pre-emptive preparation that was made when borders remained closed, and the hard work, dedication, and sacrifices of its employees," it stated.
In the year 2023, 26.5 million passengers flew by Singapore Airlines and Scoot which was six times more than 12 months through March 2022, as passenger capacity increased by 79 per cent from pre-Covid levels in March.
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