SIA Engineering widens quarterly loss to $2.9 million

SIA Engineering (SIAEC) posted an operating loss of $2.9 million despite increased demand for base maintenance checks after more aircraft returned to service in the first quarter of the 2022-23 financial year.

According to the Singaporean company’s latest financial results update, released on July 25, 2022, SIAEC saw a strong recovery in international flight activity at its Changi Airport (SIN) base during the quarter. The company estimated that the number of flights handled had doubled compared to the same period in 2021.

The number of flights handled in June 2022 reached 55% of pre-pandemic volume, SIAEC added. This led to a significant increase in its quarterly revenue, which reached $123.87 million, and was about 37% higher than the same period before the pandemic.

“Improvement has also been seen in most of our business units. The demand for component and fleet management services, which are largely driven by flight activities, has also improved,” the SIAEC report states.

“Efforts to retain our staff during the pandemic have enabled us to rapidly scale up operations to support the ramping up of the recovery. In addition, we have also stepped up our recruitment efforts, in anticipation of a sustainable recovery and to build operational resilience,” continued the MRO service provider.

Unfortunately, not all of the company’s efforts paid off. SIAEC reported an operating loss of $2.9 million in the first quarter of fiscal year 2022-23, compared to a loss of $2.08 million in the same period in 2021. SIAEC reported argue that she had widened the loss due to increased costs, citing the end of local government wage support for staff in July 2022.

“Excluding the impact of government wage support, spending increased by 19.3%, which is significantly lower than the increase in revenue,” explained the SIAEC.

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