Singapore Airlines sees path to recovery as country plans to reopen international travel

After being severely hit by the pandemic, the Singapore Aviation Industry is planning to fly again. The latest data released by Singapore airlines reveals that the COVID marred airlines, had been able to reduce its net loss to $302 million, in the first quarter of this financial year.

The airline has seen a significant improvement in its revenue generation, as the loss percentage has been reduced by over 63.6% as compared to the last year. Last year, as the COVID pandemic was on its top, the company has faced losses mounting over 1,123 million SGD.

 As tourism embarked in the country with Singapore reopening its borders, the airline is making most benefit. Singaporean airlines are one of the most esteemed airlines in the world. In its business update published on July 29, Singapore's flag carrier revealed that for the quarter that ended in June, revenue rose to SGD 1,295 million from SGD 852 million in the corresponding quarter last year, an improvement of 52.2 per cent. The airlines explained that this was mainly led by "robust cargo performance" and the absence of impairment charges. Expenditure fell by SGD 319 million or 16.9 per cent to SGD 1,569 million.

Revenue of the Singapore Airlines revived by 32.4% 

The airline said in its statement that, "Cargo flown revenue grew by SGD 214 million (+32.4 per cent), as the calibrated resumption in passenger flights contributed to an increase in cargo capacity (+46.9 per cent) and loads carried (+68.2 per cent). Cargo load factor increased 11.3 percentage points to 89.1 per cent, while yields moderated from the exceptionally high levels during the same period last year. Overall, the strong cargo revenue performance for the first quarter reflected the healthy demand fundamentals and an ongoing capacity crunch in the sector." SIA has no domestic routes and with cross border travel restrictions around the world still, very much in place, passenger load factor increased at a more modest pace of 4.6 percentage points year-on-year to 14.8 per cent.

Passenger capacity at the end of the reporting quarter rose to 28 per cent of pre-coronavirus pandemic levels resulting in passenger flown revenue of SGD 318 million, up by SGD 277 million compared with the same period (April to June) last year when almost all flights were grounded. The number of passengers carried by the group for the quarter, which included low-cost carrier Scoot was 362,000, up from 38,000 a year earlier. The airline added three new Airbus A350s into service in the quarter that just ended and removed two Airbus A330s that were on the lease. As of June 30, the groups' fleet consists of 164 passenger aircraft and seven freighters. With an average age of five years and 11 months, it has one of the youngest fleets in the airline industry.

SIA projects that passenger capacity will reach 33 per cent of the pre-coronavirus pandemic level and that it would serve at least 50 per cent of locations it did before the pandemic by the end of September.

(With ANI Inputs)
Image: AP