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CAPA - Centre for Aviation

  • Type: Informa

Singapore reopening has stepped up Singapore Airlines' recovery trajectory

Singapore Airlines (SIA) has accelerated its network recovery after the Singapore government opened the country’s borders to international travel. This caused a notable spike in passenger capacity, although the airline was already on a long term growth path even before the government’s latest move.

Singapore has been a leader in re-establishing international air links. It first set up a system of bilateral air corridors over several months. That has been replaced with a broader reopening from 1-Apr-2022. 

These steps are helpful to SIA as it looks to rebuild its network and traffic. Full recovery may still be some way off, but SIA has probably moved further in this regard than any of its rivals in the Asia-Pacific region. Capacity gains have in turn resulted in its active fleet moving closer to pre-pandemic levels.

Once again, Singapore provides a clear example of how government policy settings are the major factor in airline recovery trajectories at the moment. A significant caveat is that capacity is returning far faster than demand, but this will still put SIA in a good position when international demand does come back more strongly.  

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