FLAG carrier Singapore Airlines : C6L -0.37% (SIA) carried 2.1 million passengers on a group level in July, marking the first time its passenger carriage has crossed the 2 million mark since the start of the Covid-19 pandemic, it said in its operating results filed to the bourse on Monday (Aug 15).

 

In July, the group&rsquo s passenger load factor also reached a new pandemic-high load factor of 87.4 per cent, making it the second-highest monthly figure in its group&rsquo s history.

 

The peak summer season kept demand for air travel robust across all regions except East Asia, where travel restrictions remained in place in some key markets, SIA said.

 

In July, the group reached 67 per cent of its pre-Covid-19 capacity, while group passenger capacity was 4.9 per cent higher on month.

 

Passenger load factor for its full-service carrier SIA was 87.7 per cent, while passenger load factor for its budget carrier Scoot was at 86 per cent.

 

Cargo operations registered a load factor of 60.5 per cent, down 26.7 percentage points on year, with loads declining 4 per cent on year.

 

SIA noted that it resumed services to Shenzhen, China in the month, bringing the group&rsquo s passenger network to cover 99 destinations as at end July.

SINGAPORE Airlines (SIA) reported a Q1 FY2022 ending June 30 operating profit of S$556 million, reversing into the black on soaring air travel demand. This is SIA&rsquo s second highest quarterly operating profit since Q3 FY2007/08.

 

Earnings for the period likewise reversed into a profit of S$370 million. The Singapore carrier&rsquo s group capacity has jumped from a average 47 per cent of pre-pandemic levels in Q4 FY2021/22 to 61 per cent in Q1 FY2022/23.

 

Revenue for Q1 FY2022/23 surged 202 per cent y-o-y to S$3.9 billion from S$1.3 billion. This was driven by a 119.3 per cent increase in Q1 FY2022/23 passenger flown revenue to S$2.8 billion from S$1.5 billion. Cargo flown revenue in Q1 FY2022/23 dipped 1.5 per cent or S$17 million to S$1.1 billion as demand from air freight falls due to pandemic-related lockdowns in China. However this was offset by higher yields due to capacity constraints on key lanes between Asia and Europe.

 

SIA is forecasting group capacity to hit about 68 per cent of pre-pandemic levels in Q2 FY2022/23 and to 76 per cent by Q3 FY2022/23. The carrier is expecting travel demand to remain robust heading into the year-end holiday travel period, as forward sales remains buoyant for the next 3 months till October.

 

Cargo yields are expected to remain higher than pre-covid level even as cargo demand is being offset by seasonally slower air cargo activity during the summer. Air cargo capacity remains tight on key trade lanes between Asia and Europe as well.

 

Inflationary pressures and elevated fuel prices remain a concern, and interest rate hikes and slowing economic growth are risks to passenger travel recovery and air cargo demand, that SIA is monitoring.