Tata group's Air India partner Singapore Airlines posted the highest-ever quarterly operating profit of $755 million in the quarter ending December 2022.
Strong momentum in forward passenger sales is said to be the main reason behind this result. The airline carried 18.8 million passengers, up ninefold year-on-year (YoY) leading to a record 87.4 percent passenger load factor.
Forward sales remain strong across all markets with demand for air freight expected to face headwinds. In Q4, demand is expected to be robust supported by the recovery in East Asia as travel restrictions ease across China, Hong Kong, Japan, and Taiwan.
Meanwhile, the merger process of Vistara into Air India remains on track. The Merged entity to be four to five times larger in scale compared to Vistara that is expected to bolster Singapore Airlines presence in India along with strengthening its multi-hub strategy.
For Singapore Airlines, deeper collaboration with like-minded airlines is an integral part of the group’s partnerships strategy.
Recently, ET reported that Tata-owned Air India has begun a merger process with Vistara. Air India and Vistara had announced a merger last year with the deadline ending in March 2024. The merger is likely to be a smooth affair because Air India has inducted many former Vistara employees.
Air India hit headlines recently by signing a deal with Boeing and Airbus to buy 470 aircraft worth $70 billion that marked the largest order in aviation history. This is also Air India's first order since 2005.
First Published: Feb 22, 2023 6:53 AM IST
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