Singapore Airlines (SIA) has reported a net profit of $85 million for the 3QFY2021/2022 ended December, reversing from the loss of $142 million in the same period the year before.
The reversal into the black marks the airline’s first quarterly profit since the Covid-19 pandemic struck. It also comes on the back of a significant increase in air travel to and through Singapore from October 2021 to December 2021.
“Singapore’s launch of vaccinated travel lane (VTL) arrangements and its subsequent expansion, as well as the group’s nimble response that resulted in it being the first to open sales on almost all available routes, helped unlock pent-up demand during the year-end travel season,” says SIA in a statement dated Feb 24.
During the 9MFY2021/2022, the airlines is still posting a loss of $752 million, a 79.2% y-o-y improvement from the $3.61 billion loss in the 9MFY2020/2021.
Total revenue for the 3QFY2021/2022 surged 117.1% y-o-y to $2.32 billion due to improvements in passenger and cargo revenue.
Passenger flown revenue increased 355.2% y-o-y to $833 million, on the back of a 556.8% growth in traffic. This resulted in the passenger load factor (PLF) rising 18.9 percentage points to 33.2%.
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Cargo flown revenue rose 81.6% y-o-y to a record $1.35 billion, surpassing the $1 billion mark for the first time.
“Robust demand during the traditional cargo peak period was buoyed by retail inventory restocking and strong e-commerce traffic,” says the airline.
Cargo yields rose 26.9% y-o-y amid an ongoing industry capacity crunch.
In the 3QFY2021/2022, SIA’s total expenditure increased 60.2% y-o-y to $2.24 billion due to higher net fuel costs and non-fuel expenditure. The sum also includes the impact of the ineffective fuel hedging recorded in the year before and fair value changes on fuel derivatives.
As at end-December, SIA reported cash and bank balances of $12.1 billion, primarily due to the mandatory convertible bonds (MCBs) from its rights issue in 2021.
As at end-December, SIA’s operating fleet comprises 121 passenger aircraft and seven freighters. Scoot has 50 passenger aircraft in its operating fleet.
Based on current published schedules, the group expects passenger capacity to reach 51% by March 2022. This should result in an average capacity of 47% for the 4QFY2021/2022, compared to pre-Covid levels.
SIA says expects to serve over 70% of its total pre-Covid destinations by the end of the financial year.
Looking ahead, the group expects to see easing demands in air cargo after the peak period in the 3QFY2021/2022, in line with seasonal fluctuations and the traditional slowdown in exports over the Lunar New Year holiday season.
Shares in SIA closed 33 cents lower or 6.26% down at $4.94 on Feb 24.
Photo: SIA
