Singapore Airlines Group announced that based on its current published schedules, it expects passenger capacity to reach 43% of pre COVID-19 levels by December, 2021 which also means more available belly space for cargo.

The group network will serve just over half of total pre COVID points, or 73 destinations including Singapore, it added.

The carrier also reported record cargo revenue which it said continues to bolster the Group's operating performance.

In reporting its first half results, Singapore Airlines said its international air travel continued to recover during the first half of FY2021/22, on the back of rising global Covid-19 vaccination rates and as travel corridors – including Singapore’s Vaccinated Travel Lane (VTL) arrangement – came into effect.

The Singapore Airlines (SIA) Group's passenger traffic (measured in revenue passenger-kilometres) grew five-fold year-on-year, with passenger capacity (available seat-kilometres) also growing five-fold year-on-year to reach 32% of pre-Covid-19 levels as of September 2021.

Record-high cargo

During the period SIA said cargo flown revenue reached a record high of $1,875 million (+US$635 million or +51.2%) with the progressive resumption of passenger flights contributing to the increase in cargo capacity (+49.5%) and loads carried (+61.6%).

"The strong cargo performance reflects the capacity crunch in both air freight and ocean freight, and ongoing supply chain disruptions driving air freight demand," the carrier said.

As a result, it noted that the SIA Group recorded an operating loss of US$619 million for the first half, an improvement of US$1,244 million (+66.8%) from the $1,863 million operating loss in the previous year. 

Moving forward, the carrier expects capacity to continue improving.

It said as at September 30, the Group had an operating fleet of 171 passenger aircraft and seven freighters — one of the youngest airline fleets in the industry. It also ramped up its cargo handling capabilities with Envirotainer’s temperature controlled Releye RLP container to its cold chain solutions allowing the airline to boost its vaccine transport.

"Based on current published schedules, the Group expects passenger capacity to reach 43% of pre-Covid levels by December 2021. The Group network will serve just over half of the total pre-Covid points, or 73 destinations including Singapore," it said.

Peak season to see "strong demand"

Singapore Airlines also anticipates strong demand moving into the peak season amid persisting shipping constraints.

"The traditional year-end cargo peak period is expected to see strong demand, supported in part by retail inventory restocking before the peak shopping season," it said.

"This comes amid an ongoing industry capacity crunch for both air freight and ocean freight."

It noted that Purchasing Managers’ Indices are also still in expansionary territory for key export economies, boding well for air cargo demand.

"Nonetheless, some economies are now facing production constraints as a result of pandemic controls, supply chain disruptions, and energy shortages," it said. "The SIA Group will continue to maximise freighter utilisation to meet demand. Expansion of bellyhold capacity will continue with the resumption of passenger flights, and the continued deployment of passenger aircraft for cargo-only flights as required."

Meanwhile, it said Singapore’s quarantine-free VTL arrangements support the safe and gradual recovery of Changi Airport as a major air hub.

It said air travel demand is expected to grow as vaccination rates rise, especially in countries within the Asia Pacific region, and as government regulations ease further across key markets.