Singapore Airlines reports fiscal 1H net loss narrowed as VTLs support demand

Singapore Airlines plane on the ground at Singapore’s Changi Airport; taken November 2018.Singapore Airlines plane Changi Airport.

Singapore Airlines reported Thursday its fiscal first half net loss narrowed to S$837 million from a net loss of S$3.47 billion in the year-ago period, bolstered by record cargo revenue and vaccinated travel lanes (VTLs) supporting demand for air travel to and through Singapore.

Total revenue for the April-to-September period grew 73 percent on-year to S$2.83 billion on improvements in both the passenger and cargo segments, Singapore Airlines said in a filing to SGX.

“International air travel continued to recover during the first half of FY2021/22, on the back of rising global Covid-19 vaccination rates and as travel corridors – including Singapore’s Vaccinated Travel Lane (VTL) arrangement – came into effect,” the carrier said in the statement.

“The Singapore Airlines (SIA) Group’s passenger traffic (measured in revenue passenger-kilometres) grew five-fold year-on-year, with passenger capacity (available seat-kilometres) also growing five-fold year-on-year to reach 32 percent of pre-Covid-19 levels as of September 2021,” SIA said.

Passenger flown revenue grew by S$598 million, or 385.8 percent, on the traffic recovery, partly offset by weaker yields, SIA said.

Cargo flown revenue reached a record high of S$1.875 billion, up 51.2 percent on-year, with the progressive resumption of passenger
flights contributing to the 49.5 percent increase in cargo capacity and the 61.6 percent increase in loads carried, SIA said.

“The strong cargo performance reflects the capacity crunch in both air freight and ocean freight, and ongoing supply chain disruptions driving air freight demand,” the statement said.

Airbus A380 operations to London will resume from 18 November, and to Sydney from 1 December, amid increased demand on those routes, the filing said.

Passenger capacity is expected to reach 43 percent of pre-Covid levels by December, serving just over half the total pre-Covid points, or 73 destinations, including Singapore, SIA said.

Read Singapore Airlines’ filing to SGX.