SIA Engineering sees strong recovery, but requires substantially more activities to be operationally profitable

SIA Engineering Company may have experienced the strongest recovery in flights handled in April, but the maintenance, repair and overhaul service provider would require the volume of activities to be substantially more before it can break even operationally.

Ng Lay Pheng, SIA Engineering’s chief financial officer, said at an earnings briefing on Friday (May 6) that the mainboard-listed subsidiary of Singapore Airlines (SIA) would perhaps need to achieve more than 50 per cent of pre-pandemic levels of flights handled - a bit more substantial than the current level of volume - for it to be operationally profitable.

In April, the group handled flights at 45 per cent of pre-pandemic levels as SIA and other carriers mounted more flights in response to the reopening of borders in Singapore and the region.