In order to save costs while the aviation sector recovers from the Covid pandemic, one of the largest airline caterers in the world is replacing prawns on menus more often with chicken.
According to Singapore’s SATS Ltd., which offers a variety of third-party services to airlines, including catering, prawns that were once offered on some flights are frequently being replaced by chicken since the meat is less expensive.
SATS President and Chief Executive Officer Kerry Mok responded to an analyst question during a webcast on the company’s fiscal third-quarter results this week by saying that sometimes airlines “decide to reduce the protein amount just to maintain the price, or they look to substitute protein in terms of the meals.”We’ll switch to chicken if the prawns are too pricey, Mok added.
From S$5.1 million a year earlier, SATS reported that their quarterly profits had decreased to S$0.5 million ($375,000). The next day, its shares dropped as much as 8% before dropping 4.7% at the close, marking their biggest drop in three months. In spite of this, the outcomes were an improvement over the company’s S$9.9 million loss in the prior quarter.
SATS increased by 25% from the prior year to serve 49.1 million meals in the first nine months of fiscal 2023. The global aviation industry is in the process of rebuilding, working quickly to add employees and capacity in order to handle a rise in travel. The rebound has been uneven as nations have reopened at various times; China, one of the world’s largest air travel markets, has only recently lifted its strict Covid limits.