SIA Engineering Group has reported an 18.2 per cent revenue increase of US$263.5 million year-on-year for the first half of FY21-22.
The company referred to its first half 2021 performance as a “turnaround” from its first half loss last year, attributing the growth to “higher flight activities”.
Group expenditure grew eight per cent to $20 million year-on-year, which SIA said was due to lower government wage support and the phased rollback of manpower management measures as flight activities increased and in preparation for further recovery.
Consequently, the group incurred a lower operating loss of $6.7 million compared to a $27.2 million loss the same period last year.
SIA Engineering commented: “The Group’s financial performance for the first half year would have been loss-making had it not been for the government wage support. Flight recovery had been slow and gradual, and its outlook remains uncertain.”
Government wage support recognised during the period was lower than the same period last year. Nonetheless, without this support it would have recorded a loss of $39.5 million, the Group said.
Looking ahead, SIA Engineering commented: “While high vaccination levels achieved in major developed markets have enabled the easing of travel restrictions, there remain uncertainties for a sustained global recovery.
“The risks of new variants, spikes in infection rates or tightening of restrictions are reminders of the uncertain and uneven impact of the pandemic on the trajectory, timeline and levels of recovery in air travel across the world.
“We are encouraged by the Singapore government’s strategy to stimulate air travel with the expansion of bilateral agreements for quarantine-free travel for fully vaccinated travellers.
“While we are ensuring our readiness to scale up at the appropriate levels to meet the changing demands for MRO services, the performance going forward will be dependent on the revenue recovery outpacing the tapering off of government wage support and our gradual and prudent reinstatement of manpower management measures.”