SINGAPORE: Singapore Airlines Ltd reported robust passenger and air cargo demand in June that closed out a strong first quarter.
The number of passengers carried by Singapore Air and its low-cost unit Scoot in the three months through June 30 hit 9.6 million, up 13.8% on the same period of last year and broadly in line with the fourth quarter ended March 31.
However the island’s flag carrier remained just shy of surpassing its pre-Covid monthly traffic levels - benchmarked to January 2020 - carrying 3.19 million customers last month, according to Monday’s (July 15) statement. 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.
Singapore Air’s continued rebound after the pandemic comes as the nation more broadly picks up speed.
The country’s economic growth accelerated in the second quarter, putting it on track to expand between 1% and 3% in 2024. A slew of high-profile events this year, including 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, Singapore Air also fully redeemed the remainder of its S$6.2 billion (US$4.6 billion) of zero coupon mandatory convertible bonds that were issued in 2021, closing another chapter of its fundraising efforts during Covid.
Monday’s statement showed the airline’s group load factor in June was 87.4%, down 3.2 percentage points on June 2023.
While capacity, measured in available seat kilometres, remains short of pre-pandemic times, it’s important to note that Singapore Air, like many other carriers, isn’t flying to the same destinations with the same frequency.
Pent-up demand for travel and squeezed capacity at other airlines has also benefited Singapore Air. The carrier posted record annual net income of S$2.67 billion in May and offered a more positive outlook. Singapore Air is due to unveil its financial performance for the quarter ending June 30 at the end of July.
Its shares closed up 0.4% on Monday, bringing gains for the year to 7.6%. - Bloomberg
