Lower government grants, higher costs drag Sats into S$22.5m net loss for Q1

MAINBOARD-LISTED inflight caterer and ground handler Sats on Friday (Jul 22) posted a net loss of S$22.5 million for the first fiscal quarter ended June, reversing from a net profit of S$6.4 million in the corresponding quarter last year. 

The group attributed the net loss for the quarter to lower government grants and increased costs that were booked as the group invested in resources ahead of a full recovery by the aviation sector. Excluding government reliefs, losses for Q1 FY2023 would have stood at S$31.9 million, versus a net loss of S$35.6 million in Q1 FY2022. 

The red ink came despite a 36.2 per cent or S$99.9 million year-on-year rise in Q1 revenue to S$375.5 million from S$275.6 million. The group attributed that rise to travel growth, which has hit 55 per cent of pre-pandemic flights, and the inclusion of Asia Airfreight Terminal’s (AAT) revenue of $32.4 million.