Lisa Barrington
SEOUL (Reuters) – Demand for air travel from China has not returned to pre-pandemic levels for Singapore Airlines, but the airline has seen seats filled by a visa-free scheme for Chinese nationals to its Asian hubs this year. We plan to add more flights. the company's CEO said on Thursday.
Global air transport capacity has returned to pre-pandemic levels this year, but recovery in Asia's aviation industry has been slow as international demand in China, the world's second-largest economy, remains weak.
“Travel to China is strong, but outbound travel from China has not yet fully recovered,” Singapore Airlines CEO Goh Choon Fong told the media.
He said the visa-free scheme between China and Singapore, which began in February, had “raised the load factor somewhat” for flights to China.
The airline group is gradually restoring capacity in China and plans to add more seats to Shanghai, Beijing and Guangzhou this year, Feng added.
The flag carrier suspended flights to China's Chengdu, Chongqing and Xiamen in April, citing a lack of regulatory approval. These are currently in place and flights will operate until July, Fong said, and permits will need to be reapplied.
Singapore Airlines on Wednesday posted record annual profits for the second year in a row and raised its dividend.
However, the company's net profit in the March quarter fell about 4.5% from a year earlier, slowing profit growth in the previous two quarters.
The airline also said passenger yields (a measure of the average fare paid per mile per passenger) continue to moderate as airlines expand capacity and geopolitical issues and supply chain pressures are cited. I expect it to be.
SIA stock was down 1.6% as of 1:30 p.m. (4:30 p.m. Japan time).
Singapore Airlines plans to acquire a 25.1% stake in Air India through its merger with Vistara, a joint venture with Singapore Airlines. Fong said he hopes to hear about regulatory approval sometime this year.
The company currently has 200 aircraft in its fleet, which it expects to increase to 209 this fiscal year. Mr Fong said Singapore Airlines still expected to take delivery of the Boeing 777-9 aircraft, a model that has not yet been certified by US regulators, next year.
(Written by Lisa Barrington; Edited by Janan Venkatraman)
