$SINGAPORE AIRLINES LTD(C6L.SI)$
Singapore Airlines (SIA) swung to a first-quarter net profit of S$370 million ($268 million), it said on Thursday, after a fourteenfold increase in passenger traffic year on year thanks to an easing of COVID-19 travel restrictions.
The figure was a major improvement from the S$409 million loss in the first quarter a year earlier, when more than two thirds of its revenue was from cargo.
SIA's revenue tripled to S$3.9 billion in the three months to June 30 and its quarterly operating profit of S$556 million was the second highest in the company's history.
The airline has been ramping up capacity from its Singapore hub and expects to reach about 81% of pre-pandemic levels by the end of December, up from 61% in the June quarter.
Revenue per available seat kilometre, a measure combining airfares and the percentage of seats filled, reached a record peak at its full-service airline during the June quarter, the carrier said.
Travel demand has rebounded strongly in all regions except East Asia, where rules remain stricter than most of the world.
SIA, however, said inflationary pressures including elevated fuel prices remain a concern.
SIA reported an operating cash surplus of S$1.48 billion during the first quarter.
Its strong performance contrasts with Hong Kong-based rival Cathay Pacific Airways, which has been hampered by strict passenger and crew quarantine rules.
Cathay expects its passenger capacity to approach up to 25% of pre-pandemic levels by year-end, up from 11% in June. Singapore will resume operations at its main airport's fourth terminal on Sep. 13, the Changi Airport Group said last week, citing a strong rebound in passenger demand.
With the year end tracel demands coming, it is a good buy now as it will definitely rise soon.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Ok ✅