Singapore’s SATS posts S$75 million profit in Q1

Singapore-based ground handler and catering company SATS said its Q1 revenue rose 11.3% to S$1.68 billion and net profit rose 6% to S$75.1 million. Gateway Services revenue rose 12.8% year-on-year to S$1.33 billion, supported by continued cargo volume growth that outperformed IATA’s global growth benchmarks and the strength of SATS’ global network. Food Solutions revenue rose 5.4% year-on-year to S$346.0 million, driven by favourable pricing mix and stronger non-aviation meal volume demand, partially offset by the geopolitical environment. The company global trade and aviation continue to face an uncertain operating environment shaped by evolving trade policies, geopolitical tensions and supply chain disruptions but demand has remained resilient despite these headwinds. Looking ahead, continued uncertainty from the Middle East tensions and higher oil prices have increased fuel, transportation and other operating costs across the supply chain. As these costs typically flow through with a lag, their financial impact could be more pronounced in the coming quarters should the current situation persist. “To mitigate these potential impacts, we are actively pursuing market share gains and new client wins as we serve shifting trade flows,” SATS said in its earnings announcement. “In ground handling, we secured new contracts with Air France-KLM at John F. Kennedy International Airport (New York) in the United States and Singapore Airlines at Malaysia’s Kuala Lumpur International Airport (KLIA), while renewing China Airlines cargo contracts across multiple stations in North America. Our cargo volumes have continued to outperform IATA’s global benchmarks. In Food Solutions, we expanded our footprint with the commencement of inflight catering operations for Noida Airport in India and renewed key inflight catering contracts with British Airways, Air France and KLM in Singapore.” Kerry Mok, SATS President and Chief Executive Officer, said, “SATS’ first quarter revenue performance increased despite ongoing geopolitical developments, reflecting the resilience of our diversified global network and business portfolio amid an uncertain operating environment. While geopolitical uncertainties and rising cost pressures persist, a strong pipeline of opportunities and continued investments in strategic capabilities position us well to deliver long-term value for shareholders. Our focus remains on disciplined execution, leveraging technology to improve operational excellence and delivering sustainable growth across our global network.” For Editorial Inquiries Contact: Editor Matt Driskill at [email protected] For Advertising Inquiries Contact: Head of Sales Sally Passey at [email protected]