SINGAPORE—Singapore Airlines (SIA) has reached an agreement with Boeing to swap three 787-9s for three 787-10s, and will cancel eight 737-8s, as part of its long-term fleet renewal strategy.

The flag carrier also posted its highest-ever annual profit amidst strong post-pandemic passenger demand in fiscal 2022/23.

SIA says the Boeing order adjustments are to support its projected operational requirements.

As a result, the SIA group has 100 aircraft on order. The full-service carrier Singapore Airlines has 15 787-10s, 31 777-9s, and 13 737-8s on order, as well as three Airbus A350-900s and seven A350Fs. Scoot, SIA’s LCC arm, has three 787-8s, one 787-9, 12 A320neos, six A321neos and nine Embraer E190-E2s on order. In 2021, SIA reduced its 787-10 order from 44 to 30 in favor of 11 more 777-9s and transferred two 787-9s to Scoot.

SIA says demand has been robust in the first quarter of fiscal 2023/24, driven by East Asia’s air travel recovery, where forward sales to China, Japan and South Korea remain strong across all classes.

The group capacity stands at 79% of pre-pandemic levels, higher than the Asian international average of 58%. Passenger demand across the group, represented in revenue passenger kilometers (RPKs), quintupled, and load factors reached 85.4%—another company record.

The Star Alliance member’s full-year revenue improved 133.4% to S$17.8 billion ($13.3 billion), yielding a net profit of S$2.2 billion—the highest in the company’s 76-year history and reversing three straight years of losses following the onset of the coronavirus pandemic.

SIA says its cargo segment performance faced “macroeconomic headwinds [that] dampened consumer demands.” SIA’s cargo yields fell year-on-year as industry belly hold capacity increased. The group says despite those factors, its cargo revenue remained 83% above pre-COVID levels recorded in calendar year 2019.