Singapore Airlines said on Thursday it expects competition to intensify in the coming months as carriers scramble to take advantage of strong overseas travel demand that helped the city-state’s flagship airline to post a record first-quarter profit.
Airlines across the world are investing in improving flight frequencies and adding new destinations to reap maximum benefit of the travel rebound following easing border curbs, even as high cost inflation and elevated fuel prices snap at their heels.
“Macroeconomic and geopolitical uncertainties, as well as inflation, could pose challenges for the airline industry,” the company said.
Singapore Airlines said it will monitor these trends closely, and adjust its capacity and network accordingly.
The airline reported a net profit of S$734 million ($554.84 million) for the three months ended June 30, compared with S$370 million a year earlier.
Earlier this month, Hong Kong-based rival Cathay Pacific Airways said it expects to record a profit of up to HK$4.5 billion ($576.82 million) in the first half of the year as travel demand skyrocketed.
Passenger load factor — a measure of how many seats are filled on planes — for Singapore Airlines was 88.9% in the quarter, compared with 79.0% a year ago.
Revenue for the quarter rose 14% to S$4.48 billion.
Reuters