Singapore Airlines will reward some of its employees with a bonus exceeding eight months’ salary. This decision follows the highest profits in the airline’s 76-year history, according to a report from Bloomberg.
A spokesperson for Singapore Airlines confirmed the bonus is due to “a long-standing annual profit-sharing bonus formula that has been agreed with our staff unions.” Eligible employees will receive a bonus of 6.65 months’ salary based on the airline’s record profit in the last financial year. The group, which includes the budget airline Scoot, reported an annual net income of $1.6 billion.
In addition to the 6.65 months’ salary, employees will receive an extra bonus of up to 1.5 months’ salary. This extra bonus accounts for half a month for each of the last three years and excludes senior management. The spokesperson added that this bonus recognizes “our employees’ dedication, hard work, and sacrifices, including pay cuts during the pandemic.”
The Impact of the COVID-19 Pandemic
In September 2020, Singapore Airlines’ pilots agreed to pay cuts of up to 60%, saving about 400 jobs, according to Today, a Singaporean newspaper. The airline reported losses totaling $2.75 billion over the 2020-2022 financial years due to the impact of COVID-19, as reported by Bloomberg.
However, by March this year, passenger capacity for the airline group had rebounded to 79% of pre-COVID levels. This recovery played a crucial role in achieving record profits.
Singapore Airlines attributed its record financial performance for FY2022/23 to proactive strategic initiatives and pre-emptive preparation during border closures. The company also emphasized the hard work, dedication, and sacrifices of its employees during challenging times.
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