Singapore Airlines Group sees 13.7% increase in passengers in June

With increased passenger volume, SIA is expected to clock in a net profit of $180m-$350m in 1QFY23.

Singapore Airlines Group (SIA Group) saw a 13.7% increase in its passenger volume in June, at 1,938,200.

Apart from passenger volume, its group passenger capacity and passenger load factor (PLF) also increased in June. The former increased by three percentage points from April, whilst the latter reached a new pandemic-high of 85.5% (+7.3 percentage points).

Given the increased passenger volume and surge in airfares in recent months, UOB Kay Hian expects the group to clock in a net profit of around $180m to $350m for the first quarter of FY23.

"Driven by a strong pax volume recovery and strong airfares in recent months, SIA is likely to turn in a profit in 1QFY23," UOB Kay Hian said.

SIA will announce its 1QFY23 business update on 28 July.

Looking at the long-term, UOB Kay Hian said the airline's full recovery will hinge on Northeast Asia, which collectively formed 26% of Changi Airport passenger throughput in 2019.

As of May, air traffic to Singapore from mainland China and the rest of Northeast Asia were only at 3% and 17% of their respective pre-pandemic levels.