SINGAPORE: Singapore Airlines will spend $850 million to increase the overall seat count by up to a quarter in its fleet of A380 superjumbos, and halve the number of first-class suites, as it seeks to combat lower airfares and boost its competitiveness.
The airline, like its Hong Kong-based rival Cathay Pacific Airways, has been struggling against mounting global competition from Chinese and Middle Eastern rivals and low-cost carriers, without domestic flights to underpin their earnings.
Singapore Airlines’ yields, a proxy for airfares, are currently at a seven-year low and its A380 seat count has been the lowest in the industry.
After the planned revamp, the seat count in the Singapore Airlines A380s — which it flies to destinations like Sydney, London and Hong Kong — will rise by as much as 24 percent to 471 as the airline makes better use of the aircraft’s space without reducing the size of economy class seats.
British Airways, with 469 seats, will be the only carrier with a lower A380 seat count after the revamp.
The new A380 seats will enter service in December on the first of five new aircraft joining its fleet, and 14 existing planes flying with products designed a decade ago will be retrofitted by 2020.
The revamped A380s will have six first class seats, versus 12 earlier, which CEO Goh Choon Phong said would better match supply and demand at a time when the airline is undertaking a three-year transformation plan to stay competitive.
Singapore Airlines has long had a reputation for its premium products and service, which rivals Middle Eastern carriers like Etihad Airways and Emirates in terms of luxury, and its new first class suites will be nearly 70 percent larger than the old ones.
“We are very good at doing a lot of premium things for our customers in a cost-effective manner,” the CEO told Reuters on the sidelines of an event to unveil the seats.
Some carriers, including United Airlines and Qantas Airways, have not installed first class on newer aircraft given more demand for business class, which now often has fully flat-beds that were once exclusive to first class.
But for other airlines, first class remains a showpiece for attracting elite passengers and for broader brand marketing.
CAPA Center for Aviation Chief Analyst Brendan Sobie said it made sense for Singapore Airlines to have fewer first class suites, given they were less full on average than other cabins. “The yield premium that it generates and marketing benefit makes it worthwhile to retain and improve,” he said.
“Economy and premium economy revenues will increase due to the higher seating density. Overall the profitability of the A380 should improve, making the investment worthwhile.”
Singapore Airlines set to splash the cash in bid to up seat count by a quarter
Singapore Airlines set to splash the cash in bid to up seat count by a quarter
Closing Bell: Saudi benchmark index edged up to close at 10,549
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 58.39 points, or 0.56 percent, to close at 10,549.08.
Total trading turnover reached SR1.59 billion ($425 million), with 218 stocks advancing and 37 declining.
The parallel market, Nomu, added 222.72 points, or 0.96 percent, to finish at 23,519.01, as 43 stocks rose and 21 retreated. Meanwhile, the MSCI Tadawul Index increased by 6.11 points, or 0.44 percent, to close at 1,393.42.
Leading the day’s gains was Alkhaleej Training and Education Co., whose shares jumped 7.63 percent to SR20.45. Other strong performers included Consolidated Grunenfelder Saady Holding Co., up 6.60 percent to SR9.69, and Abdullah Saad Mohammed Abo Moati for Bookstores Co., which rose 6.48 percent to SR48.98.
On the downside, Naseej International Trading Co. recorded the largest decline, falling 2.44 percent to SR34.44, while National Gas and Industrialization Co. dropped 1.79 percent to SR93.10 and Nama Chemicals Co. slipped 1.32 percent to SR23.99.
Saudi Aramco Base Oil Co., or Luberef announced the signing of a memorandum of understanding with Saudi Aramco for a GIII+ production facility in Jazan.
The 18-month agreement, which may be renewed, is a key step in the Group III+ Project aimed at enhancing production capacity. The MoU is non-binding, and any future approvals, formal agreements, or financial impacts will be disclosed in line with regulatory guidelines. Luberef ended the session at SR96.10, down 0.26 percent.
Meanwhile, the Power and Water Utility Co. for Jubail and Yanbu, or Marafiq, reported receiving official notice of higher energy product prices used in production. The company estimated the financial impact for 2026 at 5.6 percent of total cost of sales, based on its most recent audited 2024 statements.
The effect is expected to appear in the first quarter of the 2026 fiscal year. Marafiq said it is working to mitigate the impact through improved production efficiency, enhanced plant reliability, optimized asset utilization, and cost reductions. The stock closed at SR36.80, up 1.03 percent.
