(Singapore, 16.02.2025) On 14 Feb, SIA Engineering Company (SIAEC) released its third-quarter business updates for FY2024-25, showing significant operational improvements and strategic expansions. The company handled 8.4% more flights in December 2024 compared to the same period in the previous year, surpassing the flight volume of December 2019, which reflects a robust recovery from the pandemic’s impacts.
Despite facing supply chain disruptions that extended the duration of aircraft checks, SIAEC managed to complete more intensive maintenance checks, which required longer hangar stays. The company has continued to navigate these challenges actively, focusing on mitigating the effects on their operations. Their engine and component shops have seen higher output levels thanks to ongoing efforts to overcome these supply chain constraints.
Strategically, SIAEC is pushing for growth through a non-binding framework agreement with Xiamen Iport Group, entered in November 2024. This move is set to explore investments in Arport Aircraft Maintenance & Engineering in Fujian, China, which provides line maintenance and ground services at four regional airports. This agreement follows an initial Memorandum of Understanding signed in 2023, signaling a deeper commitment to expanding SIAEC’s footprint in China.
The company’s revenue saw an 11.3% increase year-on-year, reaching $324.8 million in the third quarter, with expenditures rising by 8.5% to $320.1 million. The increment in costs was primarily due to higher manpower and repair expenses. Nevertheless, SIAEC turned an operating loss from the previous year into a profit of $4.7 million this quarter.
Profit contributions from associated and joint venture companies also increased, with a notable $8.4 million improvement, leading to a net profit of $38.2 million for the quarter—a significant increase from the previous year.
Looking ahead, SIAEC is optimistic about maintaining its momentum in the MRO industry despite ongoing challenges such as supply chain issues, rising costs, and a tight labor market. The company is in the process of implementing a new Enterprise Operating System designed to enhance MRO processes and operational resilience, which is expected to further strengthen its market position.
The Group also continues to focus on expanding its capacity, capabilities, and geographical reach to ensure long-term growth and profitability.
As of December 31, 2024, SIAEC’s equity attributable to owners stood at $1,701.4 million, marking a slight increase, while total assets were reported at $2,089.1 million. The Group’s cash balance was robust at $486.8 million, and the basic earnings per share were calculated at 3.42 cents, with a net asset value per share of 152.0 cents.
As SIAEC continues to navigate through industry challenges and leverage strategic growth opportunities, the company remains a pivotal player in the global MRO landscape, set to achieve significant strides in operational efficiency and market expansion.
