The SIA Group has posted all-time-high profits for the first half and second quarter of the 2022/23 financial year (April to March), thanks to relaxed border restrictions across key markets – including Singapore itself – and a surge in air travel demand.
Operating profit for the group, which consists of Singapore Airlines and low-cost carrier Scoot, totalled US$1.23 billion, which was an improvement on the $620 million loss the year before. Net profit was $927 million.
Passenger revenue for the group rose to US$5.98 billion (+694% year-on-year) during the first half of the FY, with traffic 11-times higher and outpacing capacity expansion. Consequently, passenger load factors rose to a healthy 83 per cent over the period.
The record profits come despite the $3.73 billion increase in expenditure (to $7.18 billion) for the half, in which net fuel prices jumped 93 per cent (+$1.47 billion).
The group put its profits down to better operating performance (+$1.85 billion), lower net finance charges (+$69 million) and joint venture and associated companies improvement (+$46 million).
Furthermore, SIA said it acted quickly on initiatives such as proactive fund-raising, staff retention and the deployment of resources in preparation for the return of air travel.
During the six months to 30 September 2022, SIA carried 11.4 million passengers, which was 13 times higher than the year prior, with passenger traffic strong across all cabin classes and routes, except in East Asia where strict border laws remained in place.
In the second quarter of the year (June to September) the group recorded an operating profit of $678 million, the highest quarterly operating profit in SIA history. Group revenue rose to $4.49 billion, also a record high for any quarter.
Over the three months, passenger load factors improved by 7.6 per cent to a record 86.6 per cent, while Revenue per available seat-kilometre (RASK) was 10.3 cents, the highest quarterly RASK in the Group’s history. Passenger capacity rose to an average of 68% of pre-pandemic levels.
New planes, routes and cabin crew
During the quarter, SIA added two Airbus A350-900 jets to its fleet, while two Boeing 737-8 aircraft returned from cabin retrofitting.
It also reinstated several services to East Asia, where it expects demand to pick up as border laws are further relaxed, and is on track to recruit around 3,000 cabin crew by the end of the financial year.
Along with higher fuel prices, SIA flagged inflationary pressures, geopolitical issues and a possible global recession as potential concerns for the Group.
Singapore Airlines and Virgin Australia yesterday announced that they have recommenced their codeshare arrangements.
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