SATS has swung into a net loss of $2.8 million in 3QFY2021 ended Dec 31 from earnings of $59.3 million in the same quarter the previous year.
The net loss could have been wider, if not for an uptick in air cargo volumes and improved contribution from overseas entities, the in-flight caterer says in a Feb 10 business update.
SATS’s revenue plunged 54% y-o-y to $251 million as its gateway and food businesses recorded lower top line contributions.
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For the nine-month period, the company swung into a net loss of $79.7 million from earnings of $174.7 million the year before.
Revenue tumbled 54.1% y-o-y to $691.5 million from $1.51 billion previously.
While the operating environment remains challenging due to ongoing pandemic-related travel restrictions, SATS says demand for air freight to transport e-commerce, pharmaceutical, and perishable products continues to increase.
The pandemic has also changed consumer lifestyles and created opportunities for SATS to grow businesses outside of the travel segment, it adds.
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“We are committed to helping our airline customers to rebound from this crisis,” says Alex Hungate, president & CEO of SATS.
“In addition, SATS aims to grow its revenues from foodservice and retail chains, institutions, fast-casual restaurants, and other non-travel related customer segments such as security services.”
On Feb 10, SATS closed down 3 cents or 0.7% at $4.09 with 1.4 million shares changed hands.
