Prawns are out and chicken is in to help cut airline meal costs

SINGAPORE – One of the world’s biggest airline caterers is swopping prawns for chicken on menus more regularly to help save costs as the aviation industry emerges from the Covid-19 pandemic.

Sats, which provides an array of third-party services including catering to airlines, said prawns that used to be available on certain flights are sometimes replaced by chicken, which is cheaper.

Airlines sometimes “decide to reduce the protein amount just to maintain the price, or they look to substitute protein in terms of the meals”, Sats president and chief executive Kerry Mok said in response to an analyst’s question during a webcast on the company’s fiscal third-quarter results this week.

“If the prawns are too expensive, we will change to chicken,” he said.

Sats said on Monday evening that

its quarterly income shrank to $0.5 million from $5.1 million a year earlier.

Its shares slid as much as 8 per cent the following day, before closing down 4.7 per cent, their biggest loss in three months.

Still, the results were an improvement from the previous quarter, when the company posted a $9.9 million loss.

Sats served 49.1 million meals in the first nine months of fiscal year 2023, an increase of 25 per cent from a year earlier.

The global aviation sector is in rebuilding mode, rushing to bring back capacity and staff to cope with a resurgence in travel.

The recovery has been uneven as countries have reopened at different times, with China – one of the world’s biggest markets for air travel – only recently ending its strict Covid-19 curbs.

Airline industry losses are expected to total $6.9 billion in 2022, according to the International Air Transport Association, following losses of $42 billion in 2021 and $138 billion in 2020. BLOOMBERG