Singapore Airlines returns to profit as Asia travel surges

[steveluv]

https://asia.nikkei.com/Business/Transportation/Singapore-Airlines-returns-to-profit-as-Asia-travel-surges?utm_campaign=GL_asia_daily&utm_medium=email&utm_source=NA_newsletter&utm_content=article_link&del_type=1&pub_date=20220729123000&seq_num=17&si=44594

Singapore Airlines returns to profit as Asia travel surges
Carrier warns of inflation, as it and city-state prepare for more visitors

Singapore Airlines will restore its India operations to pre-pandemic levels, while adding more flights to Japanese cities such as Tokyo and Osaka.   © Reuters
TSUBASA SURUGA, Nikkei staff writerJuly 28, 2022 20:41 JST

SINGAPORE -- Singapore Airlines returned to profit for the three months ended June, helped by a sharp revival in travel demand after regional economies reopen their borders as COVID comes under control. 

The city-state's flagship carrier on Thursday reported a net profit of 370 million Singaporean dollars ($268 million) for the April-June period, recovering from a S$409 million loss it posted the same period a year ago. Sales tripled to S$3.91 billion in the quarter from a year ago.

The airline has had a choppy year. It made its first quarterly profit in the three months to end-December since the onset of the pandemic, which reflected the city-state's move to expand quarantine-free travel in October. But it fell back into a loss over the next three months, hit by higher fuel prices. 

"Travel demand is expected to remain robust in the near term as we head into the year-end holiday travel period, with forward sales staying buoyant for the next three months up to October 2022," the airlines said in a statement. 

Although the travel industry in Southeast Asia is recovering, inflationary pressure, particularly high fuel prices, could still dampen earnings as airlines ramp up capacity. 

As a key travel hub, Singapore was hit hard by global COVID restrictions. For the fiscal year ended March, Singapore Airlines posted a net loss of S$962 million, its third consecutive annual loss.

Since April this year, however, Singapore has relaxed most of its restrictions and allowed quarantine-free entry for vaccinated travelers.

In the first half of this year, Singapore saw 1.5 million visitors, nearly 12 times more than the same period last year. The arrivals mostly came from Indonesia, India and Malaysia. As global travel picks up, the Singapore Tourism Board expects 4 million to 6 million visitors this year. This is still far from the 19.12 million arrivals in 2019, but much higher than the 2.74 million in 2020.

During the first quarter, Singapore Airlines carried over 5 million passengers, 14 times higher than the year before. 

Elsewhere in the region, Thailand has also opened up to vaccinated travelers and it expects 9.3 million visitors this year. Indonesia, Vietnam and Malaysia also hope to take in more arrivals this year, now that they, too, have lifted restrictions.

To meet increasing demand, Singapore's Changi Airport said it will reopen in September its fourth terminal, which mostly handles low-cost flights. 

Still, the tourism board noted that the travel industry "will face some headwinds for the rest of the year because of the volatile global political and economic environment, as well as the evolving health situation."

For Singapore Airlines, "inflationary pressures including elevated fuel prices remain a concern." Its net fuel cost more than tripled to S$1.27 billion in the three months to end-June. The airline said that it will continue to "keep a tight rein on costs," while increasing services to destinations globally. 

Singapore Airlines will restore its India operations to pre-pandemic levels, while adding more flights to Japanese cities such as Tokyo and Osaka. With strong demand, more services will be added to Los Angeles and Paris, the airline said.

Shares in Singapore Airlines rose 0.2% to S$5.36 on Thursday ahead of the earnings announcement. 

[inlinesix]

 

 

Revenue increased by 202%.

Fuel cost increased by 254%. 

Without hedging, fuel cost increased by 354%.

Looks like it still commands a premium price.

Edited July 31, 2022 by inlinesix

[Old-driver]

With exorbitant ticket prices, how not to make money?

$800 to BKK, $3k to Europe, $1.8k to Japan.... 

And their customer service is non-existent 

Edited July 31, 2022 by Old-driver

[Tohto]

Ticket price all crazy high now. 

[Rayleigh]

1 hour ago, Tohto said:

Ticket price all crazy high now. 

Not exactly, there are SIA equivalent good airlines like Emirates and Qatar which are cheaper than SQ. 

Edited July 31, 2022 by Rayleigh

[Ct3833]

dont be too happy to push up SIA share price, dont forget they have issued $10bil Mandatory convertible Bonds, SIA has to pay interest for it. next is, when it reaches 10 years , the $10bil will be converted into shares, currently SIA market cap is $16bil, add another $10bil to dilute the share, how much impact per share would it be ?   or unless my understanding is wrong. Of course , we can worry about the problem 10 years later 

[bsswan]

6 hours ago, Old-driver said:

With exorbitant ticket prices, how not to make money?

$800 to BKK, $3k to Europe, $1.8k to Japan.... 

And their customer service is non-existent 

We're all in it (COVID and the fight against it) till we're not.

Out from SG, it feels we are getting more screwed again than those coming the other way. Is this the response of SQ for accepting our taxes to keep them going?

[Voodooman]

8 hours ago, Ct3833 said:

dont be too happy to push up SIA share price, dont forget they have issued $10bil Mandatory convertible Bonds, SIA has to pay interest for it. next is, when it reaches 10 years , the $10bil will be converted into shares, currently SIA market cap is $16bil, add another $10bil to dilute the share, how much impact per share would it be ?   or unless my understanding is wrong. Of course , we can worry about the problem 10 years later 

Some of these bonds will be redeemed.  

Question is how much SIA will make during this period of tight demand supply gap to reduce the dilution. 

At this rate, they will make record profit this year. 

[inlinesix]

 

[Blueray]

NZ couple demand fare refund after being seated next to ‘snorting, farting’ dog on SIA flight

https://www.straitstimes.com/singapore/nz-couple-demand-refund-after-being-seated-next-to-snorting-farting-dog-on-sia-flight

 

[Playtime]

I guess those who all in sia shares  during covid laughing to bank liao

[13177]

On 9/10/2023 at 7:53 AM, Blueray said:

NZ couple demand fare refund after being seated next to ‘snorting, farting’ dog on SIA flight

https://www.straitstimes.com/singapore/nz-couple-demand-refund-after-being-seated-next-to-snorting-farting-dog-on-sia-flight

 

 Emotional support animals are allowed in the flight with the owner, didn't know about this. 😅

[jcmm]

On 9/10/2023 at 10:45 AM, 13177 said:

 Emotional support animals are allowed in the flight with the owner, didn't know about this. 😅

It is allowed.

I am a pet lover, esp dog but I hate taking economy and with a small place to share, I will not want to be in the same situation. 

Ground staffs did not do their job right for the above.    

[Stary]

On 9/10/2023 at 10:45 AM, 13177 said:

 Emotional support animals are allowed in the flight with the owner, didn't know about this. 😅

Not allowed. Only assistance pets are allowed.  Read the news again.....

https://www.straitstimes.com/singapore/nz-couple-demand-refund-after-being-seated-next-to-snorting-farting-dog-on-sia-flight

Since April 1, SIA has banned emotional support dogs on board its flights though it is still honouring travel for customers – and their dogs – who had made a request and submitted the required documentation prior to the date.

Approved assistance dogs are still allowed on board.

[13177]

On 9/10/2023 at 10:57 AM, jcmm said:

It is allowed.

I am a pet lover, esp dog but I hate taking economy and with a small place to share, I will not want to be in the same situation. 

Ground staffs did not do their job right for the above.    

Allowed or not allowed, economy with a dog indeed a bit too cramp liao, the space is quite small even for an adult. In this case even premium economy also tight.

[Didu]

From a layman perspective, why can't the airline place the animal on a window seat, with the owner next to it?

Wouldn't this arrangement minimise contact with other passengers?

[Playtime]

Is "emotional support" just a cheaper way to transport animal?

[Blueray]

Couple seated next to ‘snorting, farting’ dog on long-haul flight gets $1,600 refund from SIA

https://tnp.straitstimes.com/news/singapore/couple-seated-next-snorting-farting-dog-long-haul-flight-gets-1600-refund-sia