1H FY2021/22 Financial Results Analyst & Media Briefing

We will now move to the question and answer segment. For this segment, Mr Goh and Mr Tan will be joined by Mr Mak Swee Wah, Executive Vice President Operations, and Mr Lee Lik Hsin, Executive Vice President Commercial. We have around 30 minutes and we have many participants, so if I could please ask everyone to keep yourself to just one question if possible. Please identify yourself and the organisation you represent before you ask your question. Rishi could I leave it to you for the first question, please.

Thank you. We have the first question from Chen Chuanren from Air Transport World. Your line is now open.

Good morning, Siva and Mr Goh. We see that your freighter cargo revenue has been high, but it seems that you are still maintaining your freighter capabilities. Are there plans to invest further into freight or is your focus still mainly on passenger and ancillary revenue? Thank you.

We do not comment on our fleet renewal and expansion plans until we are ready to do so. But clearly, we have been utilising our freighters at a higher level than pre-Covid-19, to take advantage of the strong demand in the freight market. As the passenger capacity ramps up, we will also have the additional bellyhold space to similarly take advantage of the market situation. Thank you.

Thank you. The next question is from James Teo, from Bloomberg Intelligence. Your line is now open.

Hi, good morning. This is James from Bloomberg Intelligence. My first question is on VTL (Vaccinated Travel Lanes) versus your normal capacity. We have seen very strong bookings for VTL flights that you highlighted just now. So how do you rationalise with the normal capacity that you had before? Did you reduce? Typically, when the VTL opens, how do you balance? I presume the yields would be higher on the VTL, but would you still be operating some of the normal non-VTL flights on the same routes? That is my first question. My second one is on fuel hedging. I think Kai Ping mentioned about a neutral posture. Could you elaborate a bit more on what is meant by a neutral posture? Is there a scenario where, you know, neutral being in line with your