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SIA cuts full-year net loss by 78% to -S$962M from -$4.3 billion in FY 2020/21
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Passenger revenue in FY 2021/22 soars 309.6% to S$2,806 million on recovery in international air travel
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Cargo revenue reaches S$4.34 billion on strong demand amid continued capacity constraints for both sea freight and air freight
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SIA obtains S$532 million reduction in tax credit due to lower net loss
Singapore Airlines Group (SIA) in financial year 2021/22 narrowed its losses by 78% to S$962 million (US$694.5 million) year-on-year brought on by a recovery in international air travel as global border restrictions eased.
The airline carried 3.9 million passengers in FY 2021/22, up six-fold from the same period last year, pushing passenger revenue higher by 309% to $2,806 million. This was on the back of a 614.9% growth in traffic (revenue-passenger kilometers), which outpaced the capacity expansion of 215.7% and resulted in the passenger load factor rising 16.8 percentage points to 30.1%, the airline said in a statement.
Cargo revenue reached a record $4,339 million, up $1,630 million or 60.2%, driven by strong demand amid continued capacity constraints for both sea freight and air freight. This led to a 44.5% increase in loads carried, and a 10.8% rise in yields.
Consequently, Group revenue rose $3,799 million (+99.6%) year-on-year to $7,615 million.
The group ramped up passenger capacity, measured in available seat-kilometers, in a calibrated manner, growing from 24% of pre-COVID levels in April 2021 to 51% by the end of FY2021/22 in March 2022.
Singapore’s launch and subsequent expansion of its Vaccinated Travel Lane (VTL) scheme was the game changer, facilitating quarantine-free mass travel for the first time since the pandemic began and significantly boosting demand for flights to and through Singapore.
By deploying capacity and increasing services in an agile manner, SIA and Scoot were among the first to launch flights for all VTL points. This allowed the carriers to capture the pent-up demand for air travel as it returned.
Second Half FY2021/22
For the six months to March 31, 2022, the Group recorded an operating profit of $10 million compared to a $620 million operating loss in the first half (+$630
million). This came as borders reopened in almost all key markets, and as the rapid
expansion of VTLs during the six months supported the demand for air travel.
Group revenue rose $1,961 million (+69.4%) half-on-half to $4,788 million.
Passenger flown revenue increased by $1,300 million (+172.6%) to $2,053 million as
passenger traffic grew 257.2%, outpacing the 46.2% expansion in capacity. As a result,
passenger load factor improved 23.4 percentage points to 39.6% in the second half.
Cargo flown revenue increased by $589 million (+31.4%) as the yields (+22.1%) and
loads carried (+7.6%) were elevated by the strong cargo demand.
