SIA Engineering (SIAEC) expects demand for MRO services to remain strong, although supply chain challenges have extended the time of some aircraft checks.
“Demand for MRO services continues to look healthy as the level of flight activity remains on an upward trajectory,” says the company in its first quarter results statement.
“On the other hand, concerns over a tight labour market, supply chain issues and elevated costs still persist in the industry.”
Year-on-year, the company’s line maintenance business in Singapore handled 11.5% more flights. As of end June, SIAEC says that flights had recovered to 95% of pre-pandemic levels, compared to 84% a year earlier.
The company performed few heavy checks, however, because there were more checks for older aircraft. The additional work involved as well as supply chain challenges extended the duration of certain checks.
For the three months ended 30 June SIAEC generated an operating profit of S$1 million ($744,000), up from S$400,000 a year earlier. Revenues rose 2.5% to S$269 million.
Net profits for the quarter rose 23% to S$33.2 million.
“To capitalise on the demand recovery and manage the challenges, we remain committed to driving operational efficiency through our continuous improvement programme, maintaining cost discipline, and expanding our capabilities and geographical presence,” adds SIAEC.
