Singapore Airlines (SIA) carried a record number of passengers between April and June thanks to ¡°robust demand¡± for travel.

The Asian carrier, which also owns budget brand Scoot, saw passenger numbers increase by 6.9 per cent to 10.3 million for the first quarter of its financial year, while revenue went up by 1.5 per cent to SG$4.8 billion (€3.2 billion).

Despite this growth in traffic and revenue, SIA¡¯s passenger yields fell by 2.9 per cent year-on-year ¡°amid heightened competition as more airlines continue to add capacity¡±.

The group added that demand for flights ¡°remains healthy¡± in the current quarter across most global regions.

¡°However, the global airline industry continues to face a volatile operating environment, with challenges ranging from geopolitical developments and macroeconomic fluctuations to changing market dynamics and supply chain constraints,¡± said SIA in its announcement. ¡°The group will be agile and proactive in responding to changes in demand patterns.¡±

SIA¡¯s proposed commercial joint venture with Malaysia Airlines has just received conditional approval from the Competition and Consumer Commission of Singapore. The deal will allow the two airlines to collaborate on sales and marketing, as well as expand codeshare flights.

Meanwhile, the group said it would ¡°ramp up¡± capacity from Singapore to several regional destinations, such as Malaysia, Sri Lanka, Thailand and the Philippines, with the impending closure of budget rival Jetstar Asia on 31 July.

Scoot has also continued to add long-haul services, including a route between Singapore and Vienna, which launched in June.

SIA¡¯s operating profit for the quarter fell by 13.8 per cent year-on-year to SG$405 million (€270 million). This was due to higher inflation on non-fuel costs and accounting for losses from its 25.1 per cent stake in Air India Group, which SIA acquired following Air India¡¯s merger with Vistara earlier this year.