Singapore Airlines A380: seat density increase, new cabin products to improve fleet profitability

Singapore Airlines (SIA) is increasing seat capacity on its A380 fleet as it introduces new premium products, kick starting a new phase of capacity growth. SIA's ASKs have been on the decline since 2013 but ASK growth will resume over the next three years as the average density of its A380 fleet increases by 14%.

SIA will significantly increase economy and premium economy capacity across its A380 network, which currently includes 12 routes. First class capacity will be cut by 50% but revenues should not decline significantly as load factors improve. Business class capacity will increase slightly and SIA is hoping for higher business class load factors and yields as passengers respond positively to the product improvements.

Profitability of the A380 operation should improve, more than offsetting the investment in the new products. SIA is committed to maintaining a fleet of 19 A380s for several years; a phase out of the fleet or reduction is not an option as it is nearly impossible to remarket the aircraft.