SATS on Tuesday posted a net profit of S$65 million for the first quarter ended Jun 30, 2024, from a loss of S$29.9 million over the same period a year earlier.
This came as revenue for the period rose to S$1.4 billion, up 15.5 per cent from the S$1.2 billion it posted a year earlier.
In its Q1 business update, the company attributed this to the growth in revenue from both its gateway services and food solutions businesses.
Revenue for its gateway services segment grew 12 per cent year-on-year to S$1.1 billion on an increase in air cargo volume from high-tech shipments, growth in e-commerce demand and the shift from ocean freight due to the crisis in the Red Sea.
Meanwhile, its food solutions segment’s revenue grew 29.3 per cent to S$310.8 million as inflight meal demand rose.
As revenue scaled up, the company also realised operational efficiencies, which led operating profit margin to improve from 0.7 per cent to 8.2 per cent. Operating profit for the quarter stood at S$112.9 million.
In the coming quarters, Sats expects to maintain its positive momentum.
“The acceleration of e-commerce, the shift to air cargo because of seaport congestion, and disruption in maritime shipping are expected to continue to underpin demand for air cargo services,” the company said.