Singapore Airlines Records Largest Half Year Operating Profit in Company’s History – AirlineGeeks.com
By Will Lee
Singapore Airlines Records Largest Half Year Operating Profit in Company’s History
Singapore Airlines is on track for the recovery after the pandemic, posting highest half year and quarterly operating profit in history.
The airline has recorded a profit of $1.23 billion ($879 million) for the half year of the financial year of 2022-23 — which ended Sept. 30 — and $678 million for the quarterly operation profit. Singapore Airlines and Scoot, its low-cost subsidiary, served 11.4 million passengers during the first half of the financial year, 13 times to same time last year.
The relaxation of travel restrictions in April paved the way for the recovery, the travel demand has increased across all cabin classes and routes during the summer. The traffic of east Asia was left behind due to the travel restrictions in the region. However, the airline forecasted a rebound on East Asia travel.
Japan, Hong Kong and Taiwan have announced the relaxation of their travel restrictions in October. The airline expected the momentum could last up to Lunar New Year Holidays. Earlier, the airline announced that the flight frequencies to South Korea will be bolstered in response to the surging demand. But the pandemic is far from over, China, one of the most significant markets, has no sign of reopening its border thus far.
As of Sept. 30, Singapore Airlines’ fleet consisted of 131 passenger aircraft and seven freighters, and Scoot had 55 passenger aircraft.
Meanwhile, the airline sounded the alarm on the future, due to the prices of the fuel, geopolitical issues, inflation of the global supply chain and the risk of a global recession could be a challenge to the airline.
Singapore Airlines expected the profit from the passenger and the air fare could decline in 2023, due to its rival airlines bring back more aircraft and add capacity.
“We would not expect yields to stay at the same elevated levels we were at in 2022.” Lik-Hsin Lee, Executive Vice President Commercial of the airline said.
North America Market Rebounded
Also, Changi Airport, the gateway of the country, has revealed its passenger traffic to and from North America continued to trend above pre-pandemic levels. In wake of surging in demand, Singapore Airlines and United Airlines have enhanced their services to U.S. The airport recorded a strong recovery on Southeast Asia market as well.
“With more borders re-opening and as travel recovery picks up pace, we expect Changi Airport to handle 80% of pre-Covid flights by year end.” Ching-Kiat Lim, the Managing Director of the airport said. Also, the airport saw another sign of recovering, four terminals have restored to full operation in October, the first time since the pandemic. As at Oct. 1. Changi served 130 cities in 48 countries and territories.