Singapore Airlines Ltd.’s net income climbed 98% from a year earlier in the three months through June to a record high, lifted by surging travel demand along with high airfares.
Net income was S$734 million ($555 million) in the fiscal first quarter, Singapore Airlines said in a statement Thursday. Revenue rose 14% to S$4.5 billion.
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Airlines globally are reporting stellar earnings, including US carriers Delta Air Lines Inc. and United Airlines Holdings Inc. The post-pandemic travel rebound is persisting even against a backdrop of higher living costs and other economic pressures that have weighed on many industries.
In the depths of the Covid crisis, with no domestic market in which to operate, Singapore Airlines cut pay and thousands of jobs, renegotiated aircraft contracts and deferred plane deliveries to put a lid on costs. To help it through, the company raised S$22.4 billion since April 2020.
Singapore Airlines, which recently regained its status as the world’s best airline in the annual Skytrax awards, has forged a number of partnerships to strengthen its grip on the Asian market and widen its reach beyond its home of 5.9 million people.
The company is seeking a 25.1% stake in Air India Ltd. by merging its local venture — Vistara — into the Indian flag carrier, giving it a firmer footing in one of the world’s fastest-growing air travel markets. In May, it announced a plan to coordinate schedules and fares with PT Garuda Indonesia, building on a similar pact with Malaysia Airlines Bhd. It also signed agreements with Vietnam Airlines JSC and Thai Airways.
The strong rebound from Covid enabled the carrier to recently redeem 50% of a S$6.2 billion 2021 mandatory convertible bond, while it also redeemed a S$3.5 billion 2020 convertible bond last year.
Singapore Airlines shares have gained 36% this year, among the best performers on the 29-member Bloomberg World Airline Index.
