MAINBOARD-LISTED SIA Engineering reported a 11.7 per cent fall or S$1.7 million in Q1 FY2022-23 ended Jun 30 profit after tax to S$12.8 million Excluding government wage support Q1 FY2022-23 profit after tax would fall to S$4.2 million. (*see amendment note)
In a business update, the aircraft maintenance company reported Q1 FY2022-23 revenue increased 36.9 per cent y-o-y to S$171.5 million. This was driven by increase in line maintenance revenue as a higher number of flights were handled.
The number of flights handled in June 2022 has now reached 55 per cent of pre-pandemic volume. SIA Engineering reported a 42 per cent q-o-q growth or a doubled y-o-y growth in flights handled for Q1 FY2022-23.
While the aviation sector has seen signs of a strong recovery in the last quarter, there are many challenges that could affect the pace of recovery. From the manpower shortage in the aviation industry to macroeconomic risks of rising inflation to higher interest rates and recession among others.
"The group is closely monitoring these issues and will stay nimble as we manage the recovery. With government wage support ending in July 2022, we continue to exercise financial prudence," said SIA Engineering.
Shares of SIA Engineering closed up 0.4 per cent or S$0.01 to S$2.43 on July 25.
*Amendment note: A previous version of this story incorrectly stated that Q1 FY2022-23 net profit fell 15.3 per cent instead of 11.7 per cent.