The outlook is positive. Passenger traffic growth is expected to drive volume growth while digitalisation efforts will provide efficiency and productivity gains to cope with pricing pressure from airlines. Renewal of contract with SIA on 5+5 years terms covers the majority of the revenues from SIA and will provide more certainty of margins and pricings moving forward.
SATS’ continues to pursue growth opportunities in China. Investments in the central kitchen allow them to fulfil the demand from fast casual restaurant chains in key cities while supplementing shortfalls in-flight kitchen. The expectation of volume growth is driven by aviation demand and demand for quality food.
Potential risk factors include challenges arising from trade tensions impacting cargo volumes and airline pressure from fuel costs.