Singapore-headquartered SATS Ltd (SATS), the world's largest provider of air handling services, expects positive momentum in the coming quarters.

It said that the acceleration of e-commerce, the shift to air cargo because of seaport congestion, and disruption in maritime shipping are expected to continue to underpin demand for air cargo services.

Citing IATA's outlook, SATS noted that global air cargo traffic is expected to grow by 5% in 2024, while global passenger traffic growth is projected at 11.6% in total revenue passenger kilometres (RPK) this year.

It said that, notably, Asia Pacific is leading the recovery, with the region expected to contribute half of the world's RPK growth in 2024, particularly through its robust domestic markets.

The outlook came as SATS reported its unaudited results for the three months ended June 30, 2024. The Group's revenue increased by 15.5% to S$1.37 billion (US$105 billion) compared to the same period last year, arising from both Gateway Services and Food Solutions.

SATS said revenue for Gateway Services increased by 12.0% year-on-year (YoY) to S$1,059.5 million.

"This growth was attributed to the increase in air cargo volume driven by high-tech shipments, growth of eCommerce, and the shift from ocean freight due to the Red Sea crisis," it added.

Kerry Mok, president and chief executive officer of SATS, said the S$65 million profit for the first quarter of FY25 is due to favourable market conditions and the company's relentless drive towards better cost optimization and operational efficiency.

"We continue to gain traction from the integration with WFS as we strengthen our global market position," he said, adding that SATS' new win with the Shun Feng Group in Liège and the deepening of our collaboration with Kuehne + Nagel are testaments to the strength of our global network.

"We are also committed to supporting the needs of Singapore's Changi Airport and have established the Singapore Hub to focus on enhancing Singapore’s aviation position," Mok said.

He noted that SATS is also growing its Food Solutions business with Mitsui, leveraging SATS' culinary expertise, knowledge of food technology, and high food safety standards to mutually benefit both parties by supporting Mitsui’s distribution network with ready-to-eat meals in different formats to capture the growing demand for convenient food.