Profit-sharing bonus at Singapore Airlines
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.
This case study works well with 2.4 Motivation and demotivation, with a specific focus on types of financial rewards.
Bring in the key concept of Ethics, and discuss the extent to which businesses should use profit-sharing bonuses with their employees.
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.
