Singapore Airlines’ first-quarter profit soars on surging travel demand

Singapore Airlines Group, which comprises of the city-state’s flagship carrier Singapore Airlines and the budget unit Scoot, announced a first-quarter net profit of S$370 million ($267.3 million) after a S$210 million loss in the previous three months and a minus of S$407 million in the same period last year.

Group revenue tripled to S$3.9 billion in the three months ended June 30, while quarterly operating profit of S$556 million was the second highest in the company’s history. according to a July 28 statement by the Changi Airport-based carrier to the Singapore Exchange.

The profit turnaround is mainly attributable to a fourteen-fold increase in passenger traffic year-on-year due to an easing of Covid-19 travel restrictions in many of the carrier’s destinations, the statement said.

Both airlines carried a total of 5.1 million passengers in the first quarter, up 158.2 per cent from the previous quarter. Load factors increased to 82 per cent for Singapore Airlines and 64 per cent for Scoot.

Nearing pre-pandemic level

The airline group has been ramping up capacity from its Singapore hub and expects to reach about 81 per cent of pre-pandemic levels by the end of December, up from 61 per cent in the June quarter.

“Travel demand is expected to remain robust in the near term as we head into the year-end holiday travel period, with forward sales staying buoyant for the next three months up to October 2022,” the group said in the statement.

However, inflationary pressures including elevated fuel prices remain a concern, it added.

“Interest rate hikes and slowing economic growth in many countries around the world, including the group’s key markets, are risk factors to passenger travel recovery and air cargo demand,” the airline said.

Expanding flight network

Despite these concerns, Singapore Airlines plans to increase services to destinations in Japan, restore Indian services to pre-pandemic levels, continue Vancouver direct services and add more flights to Paris and Los Angeles. No mention of the important Chinese market was made, however.

Scoot is launching nonstop services to Tokyo and Osaka and adding more flights to Bangkok, Seoul, Cebu, Manila and Surabaya.

As of end-June, the group’s passenger network covered 98 destinations in 36 countries and territories. This compares with a pre-pandemic network of 137 destinations in 37 countries and territories.

Singapore Airlines’ strong performance contrasts with Hong Kong-based rival Cathay Pacific Airways, which has been hampered by strict passenger and crew quarantine rules.



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Singapore Airlines Group, which comprises of the city-state’s flagship carrier Singapore Airlines and the budget unit Scoot, announced a first-quarter net profit of S$370 million ($267.3 million) after a S$210 million loss in the previous three months and a minus of S$407 million in the same period last year. Group revenue tripled to S$3.9 billion in the three months ended June 30, while quarterly operating profit of S$556 million was the second highest in the company's history. according to a July 28 statement by the Changi Airport-based carrier to the Singapore Exchange. The profit turnaround is mainly attributable to a...

Singapore Airlines Group, which comprises of the city-state’s flagship carrier Singapore Airlines and the budget unit Scoot, announced a first-quarter net profit of S$370 million ($267.3 million) after a S$210 million loss in the previous three months and a minus of S$407 million in the same period last year.

Group revenue tripled to S$3.9 billion in the three months ended June 30, while quarterly operating profit of S$556 million was the second highest in the company’s history. according to a July 28 statement by the Changi Airport-based carrier to the Singapore Exchange.

The profit turnaround is mainly attributable to a fourteen-fold increase in passenger traffic year-on-year due to an easing of Covid-19 travel restrictions in many of the carrier’s destinations, the statement said.

Both airlines carried a total of 5.1 million passengers in the first quarter, up 158.2 per cent from the previous quarter. Load factors increased to 82 per cent for Singapore Airlines and 64 per cent for Scoot.

Nearing pre-pandemic level

The airline group has been ramping up capacity from its Singapore hub and expects to reach about 81 per cent of pre-pandemic levels by the end of December, up from 61 per cent in the June quarter.

“Travel demand is expected to remain robust in the near term as we head into the year-end holiday travel period, with forward sales staying buoyant for the next three months up to October 2022,” the group said in the statement.

However, inflationary pressures including elevated fuel prices remain a concern, it added.

“Interest rate hikes and slowing economic growth in many countries around the world, including the group’s key markets, are risk factors to passenger travel recovery and air cargo demand,” the airline said.

Expanding flight network

Despite these concerns, Singapore Airlines plans to increase services to destinations in Japan, restore Indian services to pre-pandemic levels, continue Vancouver direct services and add more flights to Paris and Los Angeles. No mention of the important Chinese market was made, however.

Scoot is launching nonstop services to Tokyo and Osaka and adding more flights to Bangkok, Seoul, Cebu, Manila and Surabaya.

As of end-June, the group’s passenger network covered 98 destinations in 36 countries and territories. This compares with a pre-pandemic network of 137 destinations in 37 countries and territories.

Singapore Airlines’ strong performance contrasts with Hong Kong-based rival Cathay Pacific Airways, which has been hampered by strict passenger and crew quarantine rules.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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