CAG reverses losses to achieve net profit of S$33 million for FY2023

CHANGI Airport Group (CAG) posted a net profit of S$33 million for the financial year ended Mar 31, 2023 – reversing its S$838 million loss in the previous financial year – on the back of a recovering aviation industry after borders reopened.

Overall, revenue for the group doubled to S$1.9 billion, compared to S$0.9 billion in the previous financial year, it announced in a media statement on Thursday (Jun 1).

The number of passengers that passed through Changi Airport rose steadily to reach 82 per cent of pre-Covid levels in March 2023.

For the whole of FY2023, passenger movements rose to 42.6 million – an increase of eight times compared with the previous financial year – and is at 62 per cent of pre-Covid levels.

Air-traffic movements doubled from the previous year to 257,000, or 67 per cent of pre-Covid levels.

This supported the partial recovery in revenues from airport services and airport concessions.

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At Jewel, footfall more than doubled, and the mall was close to approaching full occupancy.

Operating expenses also increased 42 per cent year on year to S$1.2 billion, largely because the group reopened the southern wing of Terminal 2 and Terminal 4 at Changi Airport to provide additional capacity for the recovery.

“Core operating, maintenance and manpower costs rose in tandem with the increased level of business activities, while energy prices surged more than three times during the year, driving up electricity costs. Covid-related government support was also progressively scaled down with traffic recovery,” read the media statement.

Lee Seow Hiang, chief executive officer of CAG, said that the group had carried out “a fundamental and crucial rebalancing of airlines across our four terminals to optimise Changi Airport’s operations”.

“Leveraging the current growth momentum, we are optimistic that passenger traffic can reach pre-Covid levels by 2024. However, as we approach a return to normalcy, we are cognisant of new frictions and hurdles that can hamper growth, “ he added.

“These include aircraft availability and long-term changes to travelling behaviour. For these reasons, we remain vigilant and will continue to pave the way forward with our emphasis on sustainable travel and building for the future through innovation.”

Tan Gee Paw, chairman of CAG, said that 2022 was a significant year of recovery for the aviation industry and Changi Airport.

“With the reopening of borders in Singapore and around the world, global travel has witnessed a strong rebound. CAG prepared well for this, and we successfully ramped up operations to meet the increase in passenger numbers. With the planned reopening of Terminal 2 North, we will have four fully operating terminals by October 2023.”