Singapore Airlines Ltd. (SIA) reported an over seven-fold jump in third-quarter net profit on Tuesday, boosted by a strong recovery in demand in key markets.
The carrier said demand for air travel is expected to be robust in the fourth quarter following a recovery in East Asia after the easing of travel restrictions across China, Hong Kong, Japan and Taiwan.
SIA, which is set to emerge as a 25.1% owner of Air India following a merger of its Vistara joint venture with the Tata Group-controlled airline, projected group capacity to reach an average of around 77% of pre COVID-19 levels in the fourth quarter.
However, it warned that the airline industry continues to face headwinds due to high-cost inflation and elevated fuel prices and flagged that competition is likely to intensify as airlines inject more capacity on international routes.
The airline’s net profit jumped to S$628 million ($469 million) in the three months ended Dec. 31, from S$85 million a year ago. The net profit also rose 12.7% over the previous quarter.
Total revenue rose 8% from the second quarter to S$4.85 billion.
SIA said it also expects demand for air freight to face headwinds due a slowdown in new orders as importers trim inventory levels.
Reuters