Singapore Airlines reported record-breaking half-year profits on Tuesday, indicating the resurgence of travel demand, particularly to Northern Asia, as countries have fully reopened post the Covid-19 pandemic.  

According to Reuters, the national carrier of Singapore, SIA, revealed that its net profit for the six months ending on September 30 reached S$1.44 billion ($1.06 billion), a significant increase from the S$926.9 million reported in the same period a year ago. In response to this performance, the airline declared an interim dividend of 10 Singapore cents per share. 

The surge in demand for air travel in the Northern Summer travel season was a significant factor contributing to SIA’s exceptional financial results. This revival was notably led by increased passenger traffic to North Asia, where countries like China, Hong Kong SAR, Japan, and Taiwan fully reopened their borders. 

The airline, in an official statement, emphasised the increasing demand for air travel, attributing its success to the resurgence in passenger numbers in these key regions. 

Notably, SIA reported a substantial decrease in costs related to fuel during the six-month period, amounting to S$413 million. However, the airline expressed concerns about potential price spikes in the fuel market due to supply risks.  

While SIA and its budget subsidiary, Scoot, collectively carried around 17.4 million passengers during the half-year, marking a remarkable 52.3 per cent year-on-year increase, the airline remains vigilant about the unpredictability of fuel prices. 

With optimism for the future, the SIA Group has set its sights on returning to pre-Covid passenger capacity levels within the fiscal years 2024-2025. To further strengthen its financial position and support its balance sheet during the pandemic-related air travel disruption, the airline issued zero-coupon mandatory convertible bonds (MCBs) in June 2021. Singapore Airlines is now in the process of redeeming 50 per cent of these MCBs, aiming to pay eligible bondholders on December 26 on a pro-rata basis. This redemption will amount to approximately 110.408 per cent of the MCBs’ principal amount or around S$1.71 billion. 

The airline also confirmed the ongoing progress of the proposed merger between Air India and its joint venture with India’s Tata Group, Vistara. This significant merger remains subject to approvals from regulators and authorities in both India and Singapore.