SIA Engineering's earnings for FY2024 increased by 46.2% y-o-y to $97.1 million, on the back of a 37.5% jump in revenue to $1.09 billion.
The improvement can be attributed to the recovery in demand for its services with aviation picking up following the pandemic.
For the most recent second half ended March, earnings increased by 11.5% y-o-y to $37.8 million, and revenue rose 33.7% to $580.2 million.
SIA Engineering plans to pay a final dividend of 6 cents, bringing the full-year payout to 8 cents. For the preceding FY, a total of 5.5 cents was paid.
SIA Engineering sees healthy demand for its services with global air travel edging closer to pre-pandemic levels.
"However, a tight labour market, supply chain issues and inflation remain key concerns that weigh on our near-term operating margins," the company warns.
See also: IHH Healthcare’s 3QFY2024 patmi remains flat at RM534 mil
In a separate announcement the following day, SIA Engineering says it has been appointed by Air India as its base maintenance partner for the development of its facilities in Bangalore.
Under terms of this partnership, the two companies will work on the planning, construction, development and operationalisation of Air India’s base maintenance facilities in the Indian city.
Projected to be ready in 2026, the facilities will include both widebody and narrowbody hangars to support Air India's fleet.
See also: Marco Polo Marine reports lower 2HFY2024 earnings of $10.7 mil, down 42% y-o-y
"This appointment marks another significant milestone in the development of the partnership between Air India and SIA Engineering Company," says CEO Chin Yau Seng.
"Going forward, we hope to have even more opportunities to collaborate with Air India in the MRO space in India," he adds.
Air India's CEO and managing director Campbell Wilson says the deal with SIAEC can help Air India become more self-reliant in the maintenance of its fleet. It also reiterates Air India's commitment to strengthen India’s aviation infrastructure by boosting the growth of the country’s MRO industry.
Singapore Airlines, the controlling shareholder of SIA Engineering, is poised to be a substantial minority stake in Air India next year.
This follows the planned merger of Vistara and Air India, both of which are now majority-held by the Tata Group.
SIA, meanwhile, owns 49% of Vistara and will see this stake become 25.1% in the merged entity when the deal is done.
Before taking the top job at Air India, Wilson was a senior SIA executive, with roles such as CEO of Scoot, the low-cost unit.
SIA Engineering shares closed at $2.29 on May 10, up 1.33% for the day but down 3.78% year to date.
