Would SATS' investment in automation pay off soon?

Automation cost the firm $13.6m in capex.

The airline solutions firm is going all in on its automation efforts, as it aims to reduce reliance on manpower and lead to improved operating leverage.

According to a report by UOB Kay Hian, SATS’ capex rose by $13.6m as it invested in automation and an e-commerce mail back facility.

“SATS cited examples such as dishwashers which will reduce the reliance on labour, as well as more energy-efficient chillers which also contributed to the decline in utilities expenses,” UOB Kay Hian said.

Meanwhile, SATS also intends to replace staff with automation which could increase its operating leverage amid wage pressures and potentially boost earnings growth.