SIA Engineering: Fiscal 3Q net profit quadruples, but still trails pre-Covid levels

Singapore Changi Airport Terminal 4 departure boardSingapore Changi Airport Terminal 4 departure board

SIA Engineering reported Monday its fiscal third quarter net profit jumped 331 percent on-year to S$33.2 million, but it highlighted that the pace of recovery remained uncertain, with activity still well below pre-pandemic levels. 

The number of flights handled at the Singapore base grew 65 percent on-year in the quarter, and by 17 percent from the fiscal second quarter, but the volume of flights handled was still only 31 percent of pre-pandemic volume, SIA Engineering said in a filing to SGX.

“The continuing recovery trend is encouraging. With this recovery, demand for transit services and aircraft return-to-service work increased while demand for aircraft preservation work reduced as more aircraft return to service,” the company said.

Covid still disrupting travel

But SIA Engineering noted the recent spikes in Covid-19 cases caused by the more contagious Omicron variant has disrupted international air travel. 

“Performance outlook depends on the extent of revenue recovery outpacing costs and the tapering of government wage support,” the company said.

Revenue for the quarter ended 31 December grew 33.8 percent on-year to S$140 million, largely on higher transit handling-related revenue on more flights handled, the company said.

But expenditure increased 42.8 percent on-year to S$147.8 million, mainly on lower government wage support, SIA Engineering said. 

The share of profits of associated and joint venture companies surged 226 percent on-year in the quarter to S$40.1 million, on higher contributions form the engine and component segment, and lower losses from the airframe and line maintenance segment, the company said. 

Read SIA Engineering’s filing to SGX for more details.