As travel recovery continues, Singapore Airlines (SIA) C6L has again reported better earnings. For its 3QFY2023, the airline reported earnings of $628 million, up 12.7% q-o-q. Revenue in the same period was up 8% q-o-q to $4.85 billion.
For the nine months ended December 2022, the airline reported earnings of $1.56 billion, versus a loss of $752 million. Revenue, meanwhile, reached $13.26 billion, up 157.9% y-o-y.
The airline has been steadily reinstating popular routes to China and India, as well as increasing frequency to the likes of Hong Kong, Seoul, Taipei and various other points in Japan.
As of Dec 31 2022, SIA as a group covered 111 passenger destinations in 36 countries, while its cargo network covers 116 destinations in 38 countries.
As China reopens, SIA is trying to resume its services. It now flies to 14 destinations in China, some way to go before reaching 25 points covered before the pandemic.
In its earnings commentary, SIA expects demand for air travel to be robust in its 4Q ended March, with support from higher traffic within East Asia.
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“Forward sales remain strong across all markets for both leisure and business travel, as well as all cabin classes. The Group will continue to monitor the demand for air travel, and adjust its capacity accordingly,” says SIA.
However, the airline warns that air freight will likely face “headwinds” this current quarter not only because of seasonal factors but also because of broader macroeconomic concerns.
“The airline industry continues to face geopolitical challenges, slowing economic growth, high cost inflation, and elevated fuel prices. Competition is likely to intensify as airlines inject more capacity on international routes,” SIA warns.
SIA shares closed unchanged at $5.78 on Feb 21.
