Clear skies ahead: Aviation sector to fully recover by FY25

The lifting of most travel restrictions will drive the sector to recovery, according to experts.

The skies are finally clearing for Singapore’s aviation sector following the country’s lifting of most of its restrictions on international travel.

Based on consensus, UOB Kay Hian said the Singapore aviation sector is likely to fully recover by FY25.

Whilst the easing of travel rules is expected to increase passenger volume, the recovery in this area will be slower than that of flight activities, according to UOB Kay Hian.

“As such, the revenue of businesses directly geared to flight activities, including SIAEC’s line maintenance services (about 50% of its pre-COVID-19 revenue) and SATS’ ground handling services (30%) should recover faster than revenue of businesses linked to relatively lagged passenger volume, such as SIA’s passenger flown revenue (80%) and SATS’ infight catering revenue (40%),” the analyst added.

Given the faster recovery of flight activities, the analyst also expects SIAEC and SAT to resume dividend payment in FY23 “when the two would have returned to positive core net profits.”

On the brighter side, the easing of travel restrictions will still help the aviation sector and Singapore move close to its goal to restore the passenger volume at Changi Airport to at least 50% of the pre-COVID-19 level in 2022.

Globally, the International Air Transport Association forecast air travel passenger volume to recover to 103% of the pre-COVID-19 level by 2024, whilst APAC will be at 97%.

Follow the link s for more news on

SIA Engineering Company

UOB

aviation sector recovery

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia