SIA Engineering deepens quarterly loss citing increased costs
SIA Engineering (SIAEC) reported a $2.9 million operating loss despite an increase in demand for base maintenance checks after more aircraft returned to service during the first quarter of FY2022-23.
According to the Singaporean company’s most recent financial results update, which were released on July 25, 2022, SIAEC noticed a strong recovery of international flight activities in its base at Changi Airport (SIN) during the quarter. The company estimated that the number of flights handled doubled that of the same period in 2021.
The number of flights handled in June 2022 reached 55% of pre-pandemic volume, SIAEC added. This resulted in a significant increase in its quarterly revenue, which reached $123.87 million, and was around 37% higher compared to the same period before the pandemic.
“Improvement was also seen across most of our business units. Demand for component and fleet management services, which are largely driven by flight activities, has similarly improved,” the SIAEC report stated.
“Efforts to retain our staff during the pandemic allowed us to quickly scale up operations to support the ramp up in recovery. In addition, we also stepped-up recruitment efforts, in anticipation of a sustained recovery and to strengthen operational resilience,” the MRO services provider continued.
Unfortunately, not all the company's efforts paid off. SIAEC reported a $2.9 million operating loss in Q1 of FY2022-23 compared to a $2.08 million loss during the same period in 2021. SIAEC argued that it has widened the loss due to a rise in costs, citing the end of local government wage support for staff in July 2022.
“Excluding the impact of government wage support, expenditure rose by 19.3%, significantly lower than the increase in revenue,” SIAEC explained.
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