Singapore Airlines group flew 9.6 million people in strong first quarter
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The number of passengers carried by SIA and its budget arm Scoot rose 13.8 per cent from the same period last year.
PHOTO: ST FILE
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Singapore - Singapore Airlines (SIA) reported robust passenger and air cargo demand in June that closed out a strong first quarter.
The number of passengers carried by SIA and its low-cost unit Scoot in the three months to June 30 hit 9.6 million, up 13.8 per cent from the same period in 2023 and broadly in line with the fourth quarter ended March 31.
However, Singapore’s flag carrier remained just shy of surpassing its pre-Covid-19 monthly traffic levels, benchmarked to January 2020, carrying 3.19 million customers in June, according to SIA’s latest operating results on July 15. Passenger traffic for January 2020 was 3.38 million.
The rising demand was attributed to mid-year school holidays in Singapore and the Northern Hemisphere’s summer travel season. Air cargo loads rose on robust e-commerce and some spillover from port congestion and disruptions to sea freight.
SIA’s continued rebound after the pandemic comes as the South-east Asian nation more broadly picks up speed. The country’s economic growth accelerated in the second quarter, putting it on track to expand between 1 per cent and 3 per cent in 2024.
A slew of high-profile events in 2024, including pop star Taylor Swift’s only South-east Asia concerts, has spurred an influx of overseas visitors, and traffic at Changi Airport got back to full strength in February.
In late June, SIA also fully redeemed the remainder of its $6.2 billion of zero-coupon mandatory convertible bonds that were issued in 2021, closing another chapter of its fund-raising efforts during Covid-19.
Its July 15 statement showed the airline’s group load factor in June was 87.4 per cent, down 3.2 percentage points from June 2023.
While capacity, measured in available seat kilometres, remains short of pre-pandemic times, it is important to note that SIA, like many other carriers, is not flying to the same destinations with the same frequency.
Pent-up demand for travel and squeezed capacity at other airlines have also benefited SIA. The carrier posted record annual net income of $2.67 billion in May and offered a more positive outlook.
SIA is due to unveil its financial performance for the quarter ending June 30 at the end of July.
Its shares closed up 0.4 per cent, or 3 cents, to $7.09 on July 16. BLOOMBERG
