Singapore Airlines swings to first quarterly profit since pandemic began

$SINGAPORE AIRLINES LTD(C6L.SI)$

Singapore Airlines Ltd. swung to its first quarterly profit since the coronavirus pandemic began, thanks to significant growth in passenger numbers and record cargo revenues.

The Singapore flag carrier C6L, -6.26% SINGY, -0.90% posted a net profit of 85 million Singapore dollars (US$63.1 million) for the third quarter ended Dec. 31, it said in a filing Thursday. This compared with a loss of S$142 million a year earlier, when border restrictions in many countries severely constrained international travel.

The airline said third-quarter revenue more than doubled on year to S$2.32 billion from S$1.07 billion.

Singapore’s launch of quarantine-free travel arrangements were a “game changer” that helped unlock pent-up demand during the year-end travel season, while its cargo segment was lifted by robust demand amid an industry capacity crunch, the company said.

Singapore Airlines said it expects air cargo demand to ease in the fourth quarter, but capacity tightness for both air and sea freight should support its loads and yields. It said it will “keep a tight rein on costs” as fuel prices rise and continue to be volatile in the months ahead.