SATS' operations continues to be resilient due to capacity redeployment to routes with higher demand amid trade volatility, and new contract wins due to business development efforts.
After the successful integration of WFS, SATS has transitioned from station-specific or project-based incremental wins toward network-wide cargo handling mandates. FY26 wins, such as its overseas hub-carrier contract with Riyadh Air, US multi-station cargo contract with Turkish Airlines, and its contract renewal for cargo handling in the US and Europe with Saudia Cargo, underscore its significance as a global air cargo operator.
Key Highlights
WFS acquisition boosts global air cargo platform.
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SATS secured S$180mil annualised revenue from new contracts in FY24, followed by additional multi-station cargo contract wins across the Americas in FY25-26. This has driven a shift in revenue contribution by geography, where markets exc. SG accounted for ~ 20% of revenue in FY23, rising sharply to ~ 65% post-acquisition in FY25.
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Cargo segment showing above expected resilience.
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Above is an excerpt from a report by Phillip Securities Research. Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.
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