Sats posts S$31.5 million Q3 profit on strong cargo volumes, seasonal demand

IN-FLIGHT caterer and ground handler Sats on Thursday (Feb 29) posted a 41.9 per cent quarter-on-quarter rise in third-quarter net profit to S$31.5 million from S$22.2 million.

It recorded performance improvements among its business units and a seasonally stronger quarter for cargo, the group said in its business update.

There were also higher contributions from the group’s share of earnings of associates and joint ventures, which stood at S$34.6 million for the quarter.

For the three months ended Dec 31, 2023, revenue rose 6.5 per cent to S$1.4 billion from S$1.3 billion in the previous quarter, as volumes improved on strong seasonal demand, particularly for Worldwide Flight Services’ cargo performance.

Sats said the number of flights handled and aviation meals served as at end-December returned respectively to 86 per cent and 97 per cent of pre-Covid levels. Cargo volume, meanwhile, was 99 per cent of pre-Covid levels on increased travel demand and seasonality factors.

Shares of Sats closed 1.1 per cent or S$0.03 lower at S$2.60 on Wednesday.