MIAMI – Despite continuing travel restrictions and border control, Singapore Airline Group (SQ) has managed to contain its first quarter 2021/2022 loss to US$302m (SG$409m), thanks to the growth in global markets served by SQ.
SQ reported growth in passenger traffic by 4.6% year-over-year in passenger load factor, reaching 14.8%. The capacity offered, measured in Available Seat Kilometer (ASK) rose to 28% of pre-pandemic levels by the end of the First Quarter (Q1) 2021/2022.
Revenue, derived from both passenger and cargo operations, shows an increase of 52.2% at US$327.8m (SG$444m). Cargo alone accounted for a 32.4% increase and increased revenue of US$158m (SG$214m).
Cargo capacity offered rose by 46.9% and 68.2% in load, showing an increase in load factor of 11.3%. The total load factor reached 89.1% when compared to last year’s results for the same period.
The strong revenue, derived from cargo operations, is attributed to increasing e-commerce demand and a dip in supply from passenger flights.
Losses for SQ
For the period being reviewed, SQ Group expenditure diminished by US$235.5m (SG$319m) and stood at US$1.15bn (SG$1.57bn) compared to US1.369bn (SG$1.89bn) recorded to Q1 for 2020/2021.
Net fuel costs increased by US$151m (SG$205m), primarily due to higher prices but also to increased operations. Fuel hedging permitted a gain of US$10m (SG$13m) which positively compared to a loss of US$52m (SG$71m) in the same period of last year.
Non-fuel expenditure amounted to US$945.8m (SG$1.28bn) with an increase of US$8.9m (SG$12m) – +0.9% – costs deriving from an uptrend in flight activity was in part mitigated by surplus aircraft being removed from the fleet, thus diminishing depreciation.
The final result is a contained loss of US$202.3m (SG$274m), showing a positive result over Q2020/2021 of negative US$563.3m (SG$763m) when compared to a loss of US$765.6m (SG$1.037bn) recorded last year.
The better results were manifested by improved operating performances and the absence of charges which, last year, related to the liquidation of the SQ subsidiary NokScoot (XW).
At the end of Q1, the SQ Group fleet totaled 164 aircraft, out of which 115 were operated by SQ and 49 by its subsidiary Scoot (TZ).
The aicraft consisted of 23 Boeing 777-300ERs, 12 A380s, 55 A350s, 15 Boeing 787-10s, one A330 and nine Boeing 737-800NG for SQ. The TZ fleet consists of 49 aircraft, including 10 Boeing 787-8s, 10 787-9s, 21 A321ceos, five A320neos, and three A321neos.
As far as the network is concerned, SQ and TZ had a calibrated extension serving a total of 63 destinations, while cargo services were flown to 76 destinations.
In Q1, TZ resumed services to Athens (ATH), Cebu (CEB), Clark (CRK), Kuala Lumpur (KUL), Macau (MFM), and Manado (MDC). SQ expects capacity to stand at 33% of pre-pandemic levels.
Article sourced on Singapore Airline Group First Quarter 2021/200 Report
Featured Image: Alberto Cucini/Airways