IN FOCUS: Singapore’s airline industry appears to be in full flight, but dark clouds lie ahead

SINGAPORE: &nbsp, The greatest obstacle in its life. In a team letter released in early 2020, Singapore Airlines ‘ CEO Goh Choon Phong described the COVID- 19 pandemic in that language.

That season, the regional carrier, along with other airlines global, was forced into grounding flights, enforcing massive pay cuts and as a last resort, furloughing employees as the sector was ravaged by a when- in- a- generation event. &nbsp, &nbsp,

However, it would seem that this significant issue has been handled with ease more than four years later.

With SIA, Low-Cost Airlines, Scoot, and Jetstar Asia making up Singapore’s airport industry, the demand for air travel is booming again with a vengeance.

From experiencing its first full- year loss in history during the pandemic, SIA in May reported a record profit of S$ 2.68 billion ( US$ 1.99 billion ) for the fiscal year ended March 2024. The praise? A benefit of about eight months ‘ salary&nbsp, for personnel.

For Scoot, evidence of progress were noticeable when it received the first two of nine Embraer aircraft in April, with CEO&nbsp, Leslie Thng noting that this&nbsp, “reflects our trust in the demand for air travel”. &nbsp,

Jetstar Asia, nevertheless, expects traveler capacity to reach pre- COVID amounts by the end of 2024. A spokesperson for the flight stated to CNA that the flight will continue to concentrate on expanding its network of routes, increasing its fleet, and hiring more staff. &nbsp,

” We’re excited about what lies ahead”, the spokesperson said. &nbsp,

But it’s not all apparent stars.

In May’s financial statement from SIA Group, some hints were provided that suggested increased competition from other airlines might have resulted in lower profits.

The team, which includes SIA and Scoot, further warned that” the airline industry continues to face problems including rising geopolitical tensions, an uncertain economic climate, provide network constraints, and higher inflation in some parts of the world.” &nbsp,

Some of these came to bear next month when Scoot cancelled some flights&nbsp, citing a “variety of administrative reasons”, which included” supply chain issues”. &nbsp,

Authorities added that the pandemic’s lack of skilled workers may have contributed as well.

SIA even experienced problems of its own when airlines to three Chinese towns were suspended in April, which analysts attributed to regulatory problems stemming from Beijing’s prioritizing the restoration of its regional airlines.

And thus while signs of progress paint an positive image of the industry, &nbsp, they are also a consequence of constrained supply- of flights and seats- leading to airlines charging higher prices amid increased demand, said&nbsp, Mr Alan Lim, director of Alton Aviation Consultancy.

As other authorities warned of a potential decline in profit, he continued,” We anticipate that there will be a return to the long-term mean in terms of monetary achievement.”