SIAEC's profits plunged 74.3% to $10.7m in Q1

The flights they handled in Singapore shrank to 13% of their usual load.

SIA Engineering Company's net profit plummeted 74.3% YoY to $10.7m in Q1 FY2020/21, the company revealed in a business update. Over the same period, revenue shrank 54.1% to $118.5m.

As international air travel came virtually to a standstill, the number of flights handled in the company’s Singapore base during the quarter was only about 13% of what they used to handle before the pandemic emerged.

This was however cushioned by the government’s wage support under the Job Support Scheme (JSS), which has been increased to 75% in May for the aerospace MRO operators. Without this support, the group estimated that they would have lost $36.7m.

“Our base maintenance unit had fewer airframe overhaul checks whilst airline customers under our fleet management business saw significant reduction in flying hours. Work volume at our engine and component joint venture companies also slowed as decreased flying hours resulted in extension of maintenance intervals,” the company said.

Basic earnings per share and net asset value per share as at 30 June was 0.96 cents and 145.5 cents respectively.