Singapore Airlines has reported robust passenger and air cargo demand during its first quarter ending June. The airline and its low-cost unit Scoot‘s passenger numbers in the three months up to June 30 reached 9.6 million, up 13.8 percent annually and broadly in line with the fourth quarter ending March 31. In June, the carrier inched closer to its pre-pandemic monthly traffic levels at 3.19 million. Passenger traffic in January 2020 was 3.38 million.
Rising summer demand
Singapore Airlines attributes this rise in demand to the school holidays in Singapore and the northern hemisphere’s summer travel season. The airline reported that air cargo loads also rose on robust e-commerce demand and some spillover from port congestion and disruptions to sea shipping.
The airline revealed in a statement that its load factor in June declined 3.2 percentage points month-on-month to 87.4 percent. Meanwhile, its capacity, measured in available seat kilometers, remained lower than pre-pandemic levels.
Other factors contributing to the growth of Singapore Airlines include the rising demand for air travel and limited capacity at other airlines.
High-profile events spur visitor traffic
In addition, the country’s economic growth accelerated in the second quarter, setting it up to expand between 1 percent and 3 percent in 2024. Multiple high-profile events this year have also spurred an influx of overseas visitors and traffic at Changi Airport, which recovered to full capacity in February.
In May, the carrier hit a record high in annual net income, which reached $1.99 billion. Singapore Air is due to release its financial performance for the quarter ending June 30 at the end of July.
Notably, Singapore Airlines shares rose 0.4 percent on Monday, bringing its gains for the year to 7.6 percent.
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