FINANCE | SIA Group makes a record yearly profit of S$2.16 billion

Singapore Airlines Ltd (SIA) reported its first yearly profit in four years on Tuesday, saying the current year is off to a great start with increased reservations to China, Japan, and South Korea after pandemic restrictions were lifted globally.  After three years of losses, the city-state's flag carrier made a record-breaking profit of S$2.16 billion ($1.63 billion) for the fiscal year ending March 31. 


According to Refinitv IBES, the profit was also above analysts' average forecast of S$2.10 billion, as the airline benefited from high pent-up demand for air travel after restrictions were removed domestically in April last year, and most recently in China. According to SIA, the group's passenger capacity reached 79% of pre-COVID levels in March and is likely to grow to roughly 83% in the current fiscal year's first half.

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Its load factor, which measures how well an airline fills available tickets, reached a new high of 85.4%.  The recovery is consistent with that of other airlines, such as Australia's Qantas, which returned to a first-half profit in February but warned of inflation and competition. 


SIA repeated the warning, adding that even in the short term, cargo demand will be modest as supply chain bottlenecks relax and worse economic conditions affect consumer demand and trade. The carrier, which is due to acquire a 25.1% share in Air India, said its expenses for the year increased by 83.4% to S$15.08 billion, owing in part to high fuel prices.


Reported By Aero-News Journal

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