SINGAPORE: Singapore Airlines (SIA) swung to a first-quarter net profit of S$370 million, this said on Thursday (Jul 28), after a fourteen-fold increase in passenger traffic year upon year thanks to a good easing of COVID-19 travel restrictions.
The amount was a major improvement from the S$409 million loss in the first quarter a year earlier when more than two-thirds of its revenue was from cargo.
SIA Group’s latest operating results demonstrated that its two airlines – SIA and Scoot : carried a total of 5. 1 mil passengers in the first quarter, up 158. 2 per cent through the previous quarter.
SIA’s income tripled to S$3. 9 billion in the three months to Jun 30 and its quarterly operating profit of S$556 million was the second highest in the company’s history.
The airline continues to be ramping up capacity from its Singapore hub and expects to reach about 81 per cent associated with pre-pandemic levels by the end of December, upward from 61 % in the June one fourth.
“Travel requirement is expected to stay robust in the near term as we head into the year-end holiday travel period, with forward sales remaining buoyant for the next three months up to Oct 2022, ” SIA said in a declaration.
Revenue per available seat kilometre, a measure merging airfares and the portion of seats stuffed, reached a record maximum at its full-service airline during the June quarter, the service provider said.
Take a trip demand has rebounded strongly in all regions except East Asia, where rules remain stricter than most of the world.
SIA, however , said inflationary pressures including elevated fuel prices remain a concern.
“Interest rate hikes plus slowing economic growth in many countries around the world, including the SIA Group’s key markets, are risk factors to passenger travel recovery and air cargo demand, ” the particular airline said.
SIA reported an operating cash surplus of S$1. forty eight billion during the 1st quarter.
Traveler capacity is likely to reach 68 percent of pre-pandemic levels in the first quarter, before improving in order to 76 per cent in the third quarter.
In response to the particular strong demand just for air travel, SIA mentioned it will enhance services to factors across Japan plus restore its Indian native network to pre-pandemic levels.
It will also add more flights to Los Angeles and Paris, and continue its direct services to Vancouver.
Scoot may launch non-stop solutions to Tokyo (Narita) and Osaka, as well as add more plane tickets to Bangkok, Cebu, Manila, Seoul plus Surabaya.
As of end-June, the particular group’s passenger network covered 98 destinations in 36 countries and territories.
This analyzes with a pre-pandemic network of 137 locations in 37 countries and territories.
Its strong overall performance contrasts with Hong Kong-based rival Cathay Pacific Airways, that can be hampered by strict passenger and crew quarantine rules.
Cathay expects its passenger capacity in order to approach up to 25 per cent of pre-pandemic levels by year-end, up from 11 per cent in 06.
Singapore can resume operations in its main airport’s fourth terminal on Sep 13, the particular Changi Airport Team said last week, citing a strong rebound in passenger demand.
“The SIA Group has strengthened the operational and economic foundations during the COVID-19 pandemic, and will keep invest in our individuals and the business to meet our growth programs and ensure that we emerge stronger, ” it said, adding it has resumed log cabin crew recruitment after a two-year hiatus.
“The Group provides ramped up assets at the various touchpoints to beyond pre-COVID levels, and increased the number of online self-service options, to better assistance customers. We are functioning closely with our environment partners globally to carry on to improve the airport experience for our customers. ”