Changi Airport Group reports fiscal year net loss narrowed

Waterfall at Jewel Changi mallWaterfall at Jewel Changi mall

Changi Airport Group reported Thursday its fiscal year net loss narrowed to S$838 million from a S$954 million net loss in the previous year amid losses related to Brazil and Russia.

Revenue for the 12 months ended 31 March climbed 35 percent on-year to S$944 million, mainly on higher passenger traffic at Changi Airport, the airport operator said in a filing to SGX.

“Most of the increase in passenger traffic came on the back of the launch of Vaccinated Travel Lanes (VTLs) and easing of travel restrictions in the latter part of the financial year,” Changi Airport Group (CAG) said.

Passenger numbers at Singapore’s airport rose to 1.14 million in March, at around 20 percent of pre-Covid levels, marking the highest level since the pandemic began, the filing said. Full-year passenger traffic at Changi Airport was 5.2 million, or around 8 percent of pre-Covid levels, but up by four times from the previous year, the filing said.

In Brazil, the business environment remained “challenging,” CAG said.

“Despite short-term support from the Brazilian government, Brazil’s deep economic recession, coupled with the global Covid-19 pandemic, had made it untenable for the group to continue to operate Tom Jobim Airport under the terms of the existing concession agreement,” CAG said. The company filed for a re-auction of the concession and de-consolidated Concessionária Aeroporto Rio de Janeiro as a subsidiary, the filing said.

As a result, CAG posted a deconsolidation loss of S$128 million.

Due to Russia’s invasion of Ukraine, CAG said it had “practical difficulties” with its Russia investments’ financial and operational activities. CAG posted a full write-down of S$201 million related to its Russia investments.

Outlook

The company was cautiously optimistic on the outlook.

Tan Gee Paw, chairman of CAG, said in the statement: “Although the global economic and political environment remains highly volatile, Changi Airport is well-poised for travel recovery with an agile, adaptable and innovative workforce behind the efforts to revive air travel.”

Lee Seow Hiang, CEO of CAG, said the company was facing operational disruptions, similar to other airports, due to manpower and capacity issues.

But he added: “Although the global economic and political environment remains highly volatile, Changi Airport is well-poised for travel recovery with an agile, adaptable and innovative workforce behind the efforts to revive air travel.”