SATS books quarterly profit, but still in the red for full year

Singapore-based ground-handler and in-flight caterer SATS said on Thursday (27 May) that it  posted a net profit of S$800,000 for the fourth quarter ended 31 March compared to a net loss of S$6.3 million the previous year due to revenue growth from non-travel-related businesses. For the full year, the group posted a net loss of S$78.9 million compared to a net profit of S$168.4 million the previous year. No final dividend was declared in a bid to “preserve more jobs and capabilities”, to support its customers as aviation volume resumes and to pursue opportunities outside of aviation, the company said in its announcement. Revenue for the quarter fell 35.7 percent to S$278.5 million year on year, dragged down by its gateway services and food-solutions segments. “The group’s performance for the quarter was impacted as low aviation volumes persisted due to heightened travel restrictions amid the ongoing COVID-19 pandemic,” the company  said in a statement. The sharp decline in aviation revenue was mitigated by the expansion into security services beyond aviation and resumption of safe cruises in Singapore. Despite the ongoing rollout of vaccines around the world, new COVID-19 variants continue to create uncertainty over the reopening of international borders, delaying the rebound of international air travel, the company added. “SATS is innovating to support its aviation customers with products and services that enable them to operate safely, efficiently, and sustainably, both in the current restricted travel environment as well as when volumes recover. During the pandemic, SATS has established itself as an essential service: keeping supply chains open and supporting efforts to protect public health. We are enhancing our cargo capabilities to meet the increasing demand for temperature-sensitive supplies and e-commerce. The food business continues to grow in new, non-travel related market segments across Asia. In addition, our security services business in Singapore is expanding. Alex Hungate, president and chief executive officer of SATS, said, “While the pandemic continues to restrict travel, SATS will continue to transform by reshaping our aviation services businesses while expanding non-travel related businesses.” For Editorial Inquiries Contact: Editor Matt Driskill at [email protected] For Advertising Inquiries Contact: Head of Sales Kay Rolland at [email protected]