ST Engineering’s commercial aerospace unit has acknowledged that it has yet to fully recover to pre-pandemic levels, despite reporting a steady increase in revenue this year.

In a business update for the nine months to 30 September, the unit reported a 25% year-on-year rise in revenue to S$2.2 billion ($1.6 billion), helped by increases in all segments including MRO and conversions.

ST Engineering

Source: ST Engineering

ST Engineering states that it is still seeing demand for nacelle work, as well as engine and component MRO work.

Passenger-to-freighter conversion demand is also strong, with slots booked through 2026. Conversion lines are “still going through [the] learning curve],” it adds. The company performs conversion work for a range of platforms, including the Airbus A321/A320P2F and A330P2F programmes.

For the three months to 30 September, the commercial aerospace unit reported revenues of around S$776 million, up 28% year on year. It is also the third consecutive quarter-on-quarter increase in revenue.

The commercial aerospace unit clinched S$1 billion in new contracts in the same period, bringing the total value of contracts won to about S$3 billion since the start of the year.

Still, Singapore-headquartered ST Engineering points out that its aerospace business has “yet to recover fully to pre-Covid-19 levels”, noting that air travel demand currently stands at around 74% pre-pandemic levels.