In May 2024, Singapore Airlines announced substantial profit-sharing bonuses for its employees, equivalent to approximately eight months of salary, following its second consecutive year of record profits. Despite industry-wide issues like Boeing’s safety problems and geopolitical tensions, Singapore Airlines earned $1.9 billion in net profits from $14.1 billion in sales revenues for the 2023-2024 fiscal year.

The airline attributed its strong financial performance to high demand for air travel, especially following the reopening of borders, post-pandemic, in North Asia as well as its reputation for luxury services.

Source: adapted from Fortune

Click on the icon below for Teacher notes on how you might use this blog with students in class.

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1. This case study works well with 2.4 Motivation and demotivation, with a specific focus on types of financial rewards.

2. Bring in the key concept of Ethics, and discuss the extent to which businesses should use profit-sharing bonuses with their employees.

3. You can also ask students to calculate the profit margin for Singapore Airlines in the 2023-24 tax year:

• Profit margin = (Profit before interest and tax / Sales revenue) × 100

• Profit margin = ($1.9m / $14.1m) × 100 = 13.48%, i.e., for every $100 of revenue, Singapore Airlines earned $13.48 as profit.