Singapore Airlines stock hits 3-year high on strong annual profit

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Singapore Airlines stock hits 3-year high on strong annual profit

Shares of Singapore Airlines SIA rose to their highest levels in more than three years on May 17 as the nation's carrier emerged from the problems of the COVID-19 pandemic to deliver a record annual profit.

The stock was last seen at S$ $6.03, up 1.86 per cent, and reaching levels unseen since February 2020.

The stock surpassed the Straits Times Index, which fell 1.08 per cent to 3.179. After the market closed Tuesday, SIA reported a net profit of S $2.16 billion US $1.63 billion for the year ended March 31, rebounding from a loss of S $962 million a year earlier.

The upbeat earnings results, a record in its 76-year history, also reversed three straight years of losses caused by the pandemic.

Strong demand for air travel following the reopening of borders boosted revenue, operating profit and passenger load factor, the airline said in a press release.

At the end of March, Group Passengers capacity reached 79 per cent of pre-COVID 19 levels, with SIA and Scoot carrying a total of 26.5 million passengers, six times more than the year before.

The passenger load factor also increased by 55.3 percent, to 85.4 percent, the highest in the company's history.

However, demand for air freight declined alongside an easing in the supply chain disruptions brought about by the pandemic, causing the carrier to see some softening in the cargo sector.