By Jamie Freed

(Reuters) –Singapore Airlines Ltd. (SIA) reported Wednesday a smaller annual loss of S$962 Million ($694.08M). This was despite low demand due to the pandemic. However, SIA said that the outlook is improving with the lifting of travel restrictions.

SIA suffered a loss of S$4.3 billion in 12 months ending March 31st. This was an improvement on the S$4.3 trillion loss a year prior that also included impairment charges for 45 aircraft older than the loss.

According to Refinitiv, the latest figures were in line with 11 analysts’ average predictions of a S$968.5million net loss.

Doubled annual revenue to S$7.6 million

SIA forecasted that passengers’ capacity would be around 61% in the first quarter, and 67% by the end of the second quarter as positive outlook was achieved.

“Key markets across the globe have further relaxed travel restrictions, supporting a strong rebound in travel across all class cabins,” SIA stated in a statement.

According to the report, forward sales were essentially at pre-pandemic levels during August, measured in terms of percentages of available seats.

On April 1, Singapore made a significant step in its reopening. It allowed fully-vaccinated travelers to enter without having to take a COVID-19 on-arrival test or quarantine. It removed all pre-departure testing requirements as of April 26.

The country’s transport minister stated Tuesday that passenger traffic to Singapore’s Changi Airport doubled in May, compared with March. This puts it at approximately 40% of its pre-COVID level.

SIA and its Hong Kong counterpart Cathay Pacific Airways Ltd do not have a local market. Singapore, however, has been reopening much quicker than Hong Kong. This allows SIA to quickly restore its pre-pandemic capacities.

($1 = 1.3860 Singapore dollars)