Singapore Airlines reported a record half-year profit on Tuesday, driven by a surge in travel demand as countries in the northern part of Asia fully reopened after the Covid pandemic. The airline's net profit increased to S$1.44 billion ($1.06 billion) for the six months ending Sept. 30, up from S$926.9 million a year ago.
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An interim dividend of 10 Singapore cents per share was declared. The airline attributed the strong performance to the recovery in passenger traffic to North Asia, particularly China, Hong Kong SAR, Japan, and Taiwan.
Despite a S$413 million reduction in fuel-related costs over the six months, the airline expressed concerns about potential price increases due to oil market supply risks. Singapore Airlines and its budget subsidiary, Scoot, carried approximately 17.4 million passengers during the half-year, a 52.3% increase year-on-year.
The group anticipates returning to pre-Covid passenger capacity levels by fiscal 2024-2025. The airline also plans to redeem 50% of the zero-coupon mandatory convertible bonds (MCBs) issued in June 2021 to bolster its balance sheet during the pandemic-induced air travel shutdown. The proposed merger between Air India and Vistara, a joint venture with India's Tata Group, is progressing and awaits regulatory approval.
