SIA Engineering Group (SIAEC) said it recorded a net profit of $97.1 million, an increase of 46% year-on-year and was the first full-year operating profit since the onset of the COVID-19 pandemic. The Group posted revenue of $1,094.2 million for the financial year ended 31 March 2024, which was 37.5% higher year-on-year, on the back of a continued recovery in demand for MRO services. Group expenditures rose at a lower rate of 32.8%, with the increase mainly due to higher manpower costs and material usage. (Note: Figures are in Singapore dollars.)
With revenue growth surpassing the increase in expenditure, the Group’s operating performance improved $28.6 million year-on-year, from an operating loss of $26.3 million last year to an operating profit of $2.3 million this year.
Share of profits from associated and joint venture companies also increased, by $23.2 million (+29.8%) to $101.0 million. Profits from the engine and component segment rose 28.2% to $97.7 million, while profits from the airframe and line maintenance segment increased to $3.3 million.
Demand for aircraft MRO services was robust in the financial year ended 31 March 2024 as global air travel and flight activities edged closer to pre-pandemic levels. Correspondingly, the Group recorded revenue increase across all its business units and portfolio of companies as business volume increased.
The total number of flights handled during the year by Line Maintenance in Singapore was 39.1% higher than last year. The number of flights handled in March 2024 was 94.4% of pre-pandemic volume, compared to 78.7% in March 2023. At overseas Line Maintenance stations, there was a similar trend of increase in flights handled. Demand for hangar checks at Base Maintenance remained healthy during the year, with a notable increase in the number of light checks as more aircraft returned to service. Base Maintenance’s capacity across the region will be further boosted once the Subang hangars in Malaysia become operational in2025.
While the outlook for MRO services was healthy the company said, a tight labour market, supply chain issues and inflation remain key concerns that weigh on near-term operating margins.
For Editorial Inquiries Contact:
Editor Matt Driskill at matt.driskill@asianaviation.com
For Advertising Inquiries Contact:
Head of Sales Kay Rolland at kay.rolland@asianaviation.com
