Singapore Airlines (SIA) reported a net profit of S$85mn (vs. a loss of S$141.8mn in Q3 2020) on total revenues of S$2.32bn, up 117% YoY for its third quarter ended December. This is the first quarterly profit for Singapore’s flag carrier since the pandemic began, driven by a rebound in travel as the island nation opened up its borders. SIA managed to improve capacity across the board with passenger capacity at 38.7% of pre-pandemic levels, cargo capacity at 73.5% and overall capacity at 51.6% vs. 13.6%, 49.3% and 26.7% for Q3 2020 and 32.3%, 62.8% and 43.6% for Q2 2021 respectively. The quarter also saw record revenues in the cargo segment, breaching the S$1bn mark to S$1.35bn on the back of strong demand and tight capacity support loads and yields. Costs also swelled 60.3% YoY to S$2.24bn primarily attributable to an increase in fuel costs. The group’s total debt rose marginally to S$14.88bn, with its cash position improving 56% from March 2021 to S$12.14bn. In terms of guidance for the March 2022 quarter, it expects passenger capacity to improve to 51% of pre-Covid levels as the airline looks to expand its Vaccinated Travel Lane (VTL) network to 49 cities across 25 countries.

SIA’s USD 3.375% 2029s issued last month have trended lower since issuance at 99.273 to 97.264 currently, yielding 3.83%.

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