During the first quarter, SIA Engineering Group revenue for the first quarter of FY2022-23 increased 36.9% year-on-year to $171.5 million. The increase was largely driven by the increase in line maintenance revenue due to the higher number of flights handled. The pick-up in flight activities saw an increase in demand for base maintenance checks as more aircraft returned to service and flying activities increased. The company also reports improved demand for component and fleet management services, which are largely driven by flight activities.
Expenditure increased at about the same rate to $175.5 million, mainly due to the reduction in government wage support. Excluding the impact of government wage support, expenditure rose by 19.3%, significantly lower than the increase in revenue. The Group recorded an operating loss of $4.0 million for the quarter, $1.1 million (-37.9%) worse year-on-year. Excluding the impact of wage support, operating performance improved $16.4 million.
The Group recorded a net profit of $12.8 million for the quarter ended 30 June 2022, a deterioration of $1.7 million year-on-year. Excluding the benefit of government wage support, the Group would have recorded a profit of $4.2 million.
SIA Engineering Engine Services, its new business unit, completed the first CFM LEAP-1B engine delivery at the new Aircraft Engine Services (AES) facilities and the company now expects a steady induction of quick turn engine services going forward.
The company stated that efforts to retain staff during the pandemic allowed it to “quickly scale up operations to support the ramp up in recovery” although it has also stepped up recruitment efforts in anticipation of a sustained recovery and to strengthen operational resilience.