Singapore Airlines sees ‘moderation’ in passenger demand; The airline will expand VTL services

Singapore Airlines Group (SIA) saw a slight moderation in passenger demand in January 2022, compared to year-end travel demand in December 2021. The Singapore government has suspended new ticket sales for Vaccinated Travel Lane (VTL) flights between December 22, 2021 and January 20, 2022 due to the emergence of the Omicron variant. Ticket sales have continued on VTL services for travel from 21 January 2022, but remain subject to a 50% reduction in arrival quotas.
The group’s passenger capacity (measured in available seat-kilometres) increased 2.8% month-on-month, reaching 46% of pre-COVID-19 levels. Passenger traffic (revenue-passenger-kilometres) decreased by 11.7% compared to the previous month. Consequently, the passenger group load factor for January 2022 decreased by 6.5 percentage points to 40% (+28.7 percentage points year-on-year).
Cargo operations recorded a freight load factor (CLF) of 76% in January 2022, down 13.2 percentage points year-on-year. Loadings (freight tonne-kilometres) growth of 33.9% lagged capacity expansion (capacity tonne-kilometres) of 57.3%. All range regions recorded lower CLF during the month.
At the end of January 2022, the group’s passenger network covered 86 destinations, including Singapore. This was an increase of one from the end of December 2021, with Scoot resuming operations in Amritsar. Singapore Airlines’ full-service network serves 63 destinations. Scoot, the low-cost subsidiary of SIA, served 36 destinations at the end of January.
VTL extension
The group also announced that it will expand its VTL network to 47 cities in 25 countries in the coming weeks. Singapore Airlines will gradually add Dubai, Hong Kong, Manila, New York (Newark) and Phuket from February 25, 2022. In tandem, SIA will increase its frequencies for flights between Singapore and several existing VTL destinations. These are Bandar Seri Begawan, Colombo, Malé and Phnom Penh. A subsidiary of Scoot-cost, it will gradually integrate Chiang Mai, Cebu, Clark, Davao, Hong Kong, Jeddah, Krabi, London (Gatwick) and Phuket into its VTL network. Scoot will also increase its frequency for services between Singapore and Phuket.
Singapore’s VTL arrangements have helped successfully unlock pent-up demand for international air travel to and through Changi Airport. SIA has built its VTL network in a calibrated way over the past few months. By adding new VTL services and increasing frequencies on several existing routes, SIA Group can provide more travel options and greater flexibility for customers.
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