Singapore Airlines Gains Record Profits in Latest Report – Airways
Dallas — In its latest financial update, Singapore Airlines (SIA) reported record revenue on increased demand for air travel and the reopening of international borders.
The airline reported net income of $628 million for the third fiscal quarter ended March 30, 2023, bringing its nine-month net income for the period April through December 2022 to a record $1.56 billion. Dollar.
Results represented a reversal of the $752 million deficit for the four-month period ended April-September 2021 and a 12.7% increase from earnings of $557 million in the third quarter of the prior year.
That was followed by an 8% year-over-year increase in revenue for the third quarter to $4.85 billion, resulting in nine-month revenue growth of 158% to $13.26 billion.
The company’s financial position remained solid.
Singapore Airlines in 2022
The Group’s equity as of December 31, 2022, which decreased by $3 billion as a result of the June 2020 repayment of its mandatory convertible notes, was $19.4 billion. Largely due to sale-and-leaseback activity, total debt increased $4 billion to $16.1 billion. The group’s leverage increased from 0.7 times to 0.83 times.
Cash and bank balances increased to $15.4 billion from $1.6 billion. In addition, the company had access to $2.2 billion in committed lines of credit that had not yet been drawn. All of this was the result of strong demand and record passenger factors across all routes and cabin classes.
Before the pandemic, SIA’s route network, which includes that of its low-cost airline Scoot, consisted of 137 destinations in 37 countries and territories. As of December 31, this network consisted of 111 destinations in 36 countries and territories, including Singapore.
In the third quarter, the number of passengers carried by the two airlines rose 17% to 7.4 million. The group carried 18.8 million passengers in the nine months ended December 2022, a ninefold increase from the previous year.
Services in China and Indonesia
SIA Group restored service to destinations in China and Indonesia and increased frequency to destinations in Hong Kong, Seoul, Taipei and Japan in the third quarter from October to December. Looking ahead, SIA stated that the trend in passenger numbers remained robust in the fourth quarter (January to March 2023).
The airline reported a record load factor of 85.9% for January after third quarter load factor rates were reported well above 80%.
In the third quarter, the number of passengers carried by the two airlines rose 17% to 7.4 million. The group carried 18.8 million passengers in the nine months ended December 2022, a ninefold increase from the previous year.
SIA Group restored service to destinations in China and Indonesia and increased frequency to destinations in Hong Kong, Seoul, Taipei and Japan in the third quarter from October to December.
Looking ahead, SIA stated that the trend in passenger numbers remained robust in the fourth quarter (January to March 2023). The airline reported a record load factor of 85.9% for January after operating well above 80% in the third quarter.
Featured image: Singapore Airlines A350-900 9V-SMU at Manchester Airport (MAN) 25 October 2022. Photo: Daniel Crawford/airways