SATS air cargo revenue rises on Middle East reconstruction demand

SATS, the world’s largest air cargo operator, reported a significant revenue increase driven by demand for transporting machinery and materials to the Middle East. The surge is linked to U.S. energy companies sending equipment for the repair of pipelines and infrastructure damaged during conflicts involving the U.S., Israel, and Iran.

CEO Kerry Mok stated that the company has chartered up to 50 flights per week to meet this extraordinary demand. For the quarter ending in June, SATS saw an 11.3% rise in revenue, with the Americas region growing by 15.4%. Despite a 6% increase in net profit to $55 million, the company noted higher costs due to energy inflation and flight disruptions.

In addition to Middle East reconstruction efforts, SATS is benefiting from the global artificial intelligence boom. Technology companies are increasingly utilizing air freight to transport essential data center equipment, such as server racks, storage systems, and GPUs.