Yahoo Finance UPDATE 2-Singapore Airlines swings to record profit, says year off to strong start
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Annual net profit of S$2.16 bln, highest on record
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Recommends final dividend of 28 SG cents/share
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Robust air travel demand in Q1 FY2023/24
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Inflation, competition, macro uncertainties pose risks
(Adds details on results, outlook on cargo demand in paragraphs 4-6)
By Savyata Mishra
May 16 (Reuters) - Singapore Airlines Ltd (SIA) posted its first annual profit in four years on Tuesday and said the current year is off to a strong start with higher bookings to China, Japan and South Korea as pandemic curbs ended globally.
The city-state's flag carrier logged a record-high profit of S$2.16 billion ($1.63 billion) for the year ended March 31, after posting losses for the past three years.
The profit also beat analysts' average estimate of S$2.10 billion, per Refinitv IBES, as the airline benefited from strong pent-up demand for air travel as restrictions eased domestically in April last year, and most recently in China.
SIA said the group's passenger capacity reached 79% of pre-COVID levels in March and is expected to rise to around 83% in the first half of the current fiscal year. Its load factor, a measure of how well an airline is filling available seats, jumped to a record-high 85.4%.
The turnaround is in line with other airlines such as Australia's Qantas, which returned to a first-half profit in February but warned of inflation pressures and competition.
SIA echoed that warning and added that even near-term cargo demand would be softer as the supply chain bottlenecks ease and weaker economic conditions impact consumer demand and trade.
The carrier, which is set to take a 25.1% stake in Air India, said its expenses for the year swelled 83.4% to S$15.08 billion, partly driven by fuel prices remaining at elevated levels.
SIA's board proposed a final dividend of 28 Singapore cents per share for the year. (Reporting by Savyata Mishra and Roushni Nair in Bengaluru; Editing by Savio D'Souza and Nivedita Bhattacharjee)
