News
Singapore Airlines reports first half US$660 million profit
November 7th 2022
Singapore Airlines (SIA) has surged back to the black in the six months to September 30, reporting an interim net profit of S$926.9 million (US$660 million) against a net loss of S$836.8 million in first half 2021. Read More » Revenue leapt 197.7% to S$8.4 billion, SIA said in a regulatory filing to SGX stock exchange. Underscoring its financial turnaround, the company booked an operating profit of S$1.2 billion for the reported months, the highest in its history. “The results followed the group’s record operating profits in the first half and second quarters of fiscal 2022-2023. Air travel demand surged at the group after Singapore reopened to fully vaccinated travellers in April and border restrictions were eased in many key markets, SIA said. “This has largely come about because the group was fast out of the blocks in undertaking several initiatives. They included proactive fund raising, talent retention and resource deployment in preparation for the recovery of air travel, putting the group in a strong position to capture pent-up demand,” SIA said. The company has resumed dividends announcing an interim 10 cents per share payment.
Capacity at Singapore Airlines and Scoot flying businesses is forecast to reach 76% of pre-COVID-19 levels in the second half of the year, to March 31, 2023. “Demand is predicted to be strong as we head into the year-end peak travel season,” SIA said. “With the recent relaxation of border controls in parts of East Asia, we expect demand to pick up in Hong Kong, Taipei and points in Japan, especially during the holiday period. Forward sales are forecast to remain buoyant in the months leading to the Lunar New Year period [in late January].” The group noted high fuel prices, inflationary pressures across the supply chain, geopolitical issues and macro-economic uncertainties, including the risk of a global recession beyond the Lunar New Year, remain risk factors in its outlook.
