Singapore Airlines (SIA) and its subsidiary, Scoot, reported a combined passenger traffic of 2.6 million in January, a significant four-fold increase from the same period last year. However, this represented a 2.7% decline from December, indicating a slight dip in air travel demand.
Decline in passenger load factor in January
The group’s passenger load factor (PLF) also saw a decline in January, dropping 2.8 percentage points from the previous month to 86.9%. SIA recorded a monthly PLF of 85.9%, while Scoot achieved 90.4%. The decrease in PLF is likely due to factors such as travel restrictions and changing consumer behaviour amid the ongoing pandemic.
Decrease in cargo load factor
SIA’s cargo operations also reported a decline in January, with its cargo load factor decreasing by 24.2 percentage points year-on-year to 51.8%. This was accompanied by a 24.8% drop in loads (freight tonne-kilometres) due to weaker cargo demand.
Increase in capacity
On a positive note, the group’s capacity (capacity tonne-kilometres) expanded by 10.2% in January, indicating a steady recovery in the aviation industry.
Expansion of network
SIA and Scoot resumed services to Balikpapan and Guangzhou, respectively, in January. By month’s end, the group’s passenger network covered 112 destinations in 36 countries and territories, with SIA and Scoot serving 77 and 88 destinations, respectively. Meanwhile, its cargo network covered 117 destinations in 38 countries and territories.
Also read: GDP Growth To Slow Down In 2023: Singapore May Dodge Recession
The aviation industry, including SIA and Scoot, is showing signs of recovery with an increase in passenger traffic and expansion of the network. However, factors such as changing consumer behaviour and travel restrictions continue to affect the demand for air travel.
