SIA Group flies 28.2% more passengers in February; Sats makes acquisition in Sweden

FLAG carrier Singapore Airlines (SIA) carried 3.1 million passengers on a group level in February, up 28.2 per cent from a year ago, it said in its operating results filed to the bourse on Friday (Mar 15).

Passenger traffic for the group was up 20.4 per cent from a year ago. The growth in passenger traffic was in line with its capacity increase of 20.7 per cent over the same period, added the carrier.

Passenger demand was boosted by the Chinese New Year holiday season across Asia, said the group.

Meanwhile, group passenger load factor stood at 86.3 per cent, with SIA and its low-cost airline arm Scoot posting monthly passenger load factors of 84.5 per cent and 92.6 per cent, respectively.

Stronger e-commerce flows also boosted SIA’s cargo carriage to 432.3 million tonne-km, a year-on-year increase of 12.9 per cent.

This outpaced the capacity expansion of 7.4 per cent from a year before, said the group.

As at end-February, the group’s passenger network covered 121 destinations in 35 countries and territories. SIA served 76 destinations, while Scoot served 67 destinations. Its cargo network comprised 126 destinations in 37 countries and territories.

Separately, in-flight caterer and ground handler Sats announced on Friday its plans to acquire an air cargo handler and border inspection business in Sweden through its wholly owned subsidiary, WFS Sweden, for 94 million Swedish kronor (S$12.2 million).

The group said in a bourse filing that it had entered into a sale-and-purchase agreement with Ola Elfstrom Aktiebolag to acquire Terminal & Transporttjanst i Sigtuna (TT) and APH Logistics (APH).

Both TT and APH are incorporated in Sweden and operate out of the country’s largest airport, Stockholm Arlanda.

TT provides cargo handling and cargo transportation services to airlines, freight forwarders and time-critical medical suppliers.

APH specialises in border inspection services with perishable and cold chain facilities. APH’s services complement the air cargo services provided by TT.

“This move will strengthen the group’s presence in the Stockholm market and our specialised cargo handling capability, as well as add new capacity for growth,” said the group.

The proposed acquisitions will be funded through Sats’ internal resources, and the purchase consideration will be paid in cash.

The book value of the acquisitions, based on unaudited management accounts as at December 2023, is approximately five million Swedish kronor. The net tangible asset value is about 3.9 million Swedish kronor.

The acquisitions are not expected to have any material impact on the company’s net tangible assets per share and consolidated earnings per share for the current financial year, said the group.

Shares of SIA closed at S$6.38 on Friday, down S$0.04 or 0.6 per cent, before the announcement. Sats declined S$0.01 or 0.4 per cent to S$2.55.