SINGAPORE (THE BUSINESS TIMES) - Mainboard-listed SIA Engineering reported an 11.7 per cent year-on-year fall in first-quarter net profit to $12.8 million.
Excluding the benefit of government wage support, profit for the three months to end-June would have fallen to $4.2 million.
In a business update on Monday (July 25), the aircraft maintenance company reported that Q1 revenue increased 36.9 per cent year on year to $171.5 million.
This was driven by an increase in line maintenance revenue as a higher number of flights were handled.
The number of flights handled in June has now reached 55 per cent of pre-pandemic volume.
SIA Engineering reported a 42 per cent quarter-on-quarter growth or a doubled year-on-year growth in flights handled for the first quarter.
The aviation industry experienced signs of a strong recovery in the last quarter, as the lifting of travel restrictions in many countries led to a significant increase in flight activities.
Apart from North Asia, rising infections have not appeared to dampen the demand for international travel, SIA Engineering said.
It added however that many challenges remain that can affect the pace of recovery, including the aviation industry's growing manpower crunch; the risks of rising inflation, higher interest rates and recession; supply chain disruptions arising from the Russian-Ukraine conflict and possible threats of outbreaks from new Covid-19 variants.
"The group is closely monitoring these issues and will stay nimble as we manage the recovery. With government wage support ending in July 2022, we continue to exercise financial prudence," said the company.
Shares of SIA Engineering were down one cent, or 0.4 per cent, at $2.42 at the midday trading break on Tuesday.