SIA Group posts second-half operating profit as travel demand returns

©Singapore Airlines

The Singapore Airlines (SIA) Group carried 3.9 million passengers in FY2021/22, up six-fold from a year before, with international air travel recovering in the last six months as global border restrictions eased.

The Group ramped up passenger capacity (measured in available seat-kilometres) in a calibrated manner, growing from 24% of pre-Covid levels in April 2021 to 51% by the end of FY2021/22 in March 2022. As a result, passenger flown revenue grew by SG$2,121 million (+309.6%) year-on-year to SG$2,806 million. This was on the back of a 614.9% growth in traffic (revenue-passenger kilometres), which outpaced the capacity expansion of 215.7% and resulted in the passenger load factor rising 16.8 percentage points to 30.1%.

Cargo flown revenue reached a record SG$4,339 million (+SG$1,630 million or +60.2%), driven by strong demand amid continued capacity constraints for both sea freight and air freight. This led to a 44.5% increase in loads carried, and 10.8% rise in yields. Consequently, Group revenue rose SG$3,799 million (+99.6%) year-on-year to SG$7,615 million.

The Group recorded an operating loss of SG$610 million, an improvement of SG$1,903 million (+75.7%) from the SG$2,513 million loss a year before. The Group also recorded an operating profit of SG$10 million for the six months to March 31, 2022, compared to a SG$620 million operating loss in the first half (+SG$630 million). This came as borders reopened in almost all key markets, and as the rapid expansion of VTLs during the six months supported the demand for air travel. (£1.00 = SG$1.72 at time of publication).

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