SATS sees earnings rise on cargo, catering

Singapore-based catering company and ground handler SATS said its earnings grew 9.1 percent year on year to S$70.9 million for the first quarter ended June 30, boosted by growth in aviation cargo and food service volumes. Revenue for the quarter was up 9.9 percent at $1.5 billion. Of this, S$1.18 billion came from gateway services, 11.2 percent higher than in the year-ago period, due to a larger customer portfolio. Significant customer wins included carriers Cathay Cargo, Cathay Pacific, Emirates SkyCargo, Riyadh Air and Turkish Airlines, the company said. (PHOTO: SATS) The company said its Gateway Services revenue rose 11.2% year-on-year to S$1.18 billion, driven by a larger customer portfolio and strong cargo volume growth that outperformed IATA’s global growth benchmarks. Food Solutions revenue rose 5.6% year-on-year to S$328.3 million, driven by sustained growth in air travel and inflight meal demand. Looking ahead, amid economic uncertainties, the company said Gateway Services is expected to remain resilient, supported by its business mix and global network. Food Solutions will continue to benefit from increased regional demand for authentic, high-quality aviation meals. (PHOTO: SATS) “While recent IATA growth trends indicate a more measured rate of expansion in global cargo and passenger markets due to changing trade dynamics, tariffs and operating conditions, we expect to maintain our momentum in outperforming these benchmarks. Our global network continues to see significant customer wins, with Cathay Cargo, Cathay Pacific, Emirates SkyCargo, Riyadh Air and Turkish Airlines added to our expanding portfolio of leading carriers served by SATS. In Singapore, strategic infrastructure developments are underway to upgrade airfreight terminals and improve ground support capabilities, with the aim of increasing operational efficiency and competitiveness at the Singapore Hub,” the company said. SATS CEO Kerry Mok. Kerry Mok, President and Chief Executive Officer of SATS, said, “In recognition of Singapore’s 60th year of independence, we are proud to reaffirm our position as a Singapore-headquartered multinational. SATS’ development and transformation over the years demonstrates resilience, adaptability, and a progressive approach, mirroring the qualities that have contributed to Singapore’s achievements and progress. Our financial performance and market share growth in the first quarter of FY26 reflects continued demand for our services and the effectiveness of our integrated global platform. Our recent hub management agreement with Riyadh Air further highlights our ability to grow in spite of a volatile environment by leveraging the power of our global reach, network and strong customer relationships. This underscores the depth of our capabilities and our confidence in sustaining momentum across our businesses. We will continue to execute our strategy with discipline to deliver sustainable value for our stakeholders and strengthen SATS’ leadership position in the ever-evolving aviation industry.” For Editorial Inquiries Contact: Editor Matt Driskill at [email protected] For Advertising Inquiries Contact: Head of Sales Kay Rolland at [email protected]