Sats says no ‘material interruption’ to Middle East cargo operations amid Iran conflict

[SINGAPORE] Cargo handler Sats said on Friday (Mar 6) that its Middle East operations have “not experienced any material interruption” amid the ongoing conflict in the region.

The company, which provides air cargo handling services and operates facilities in Saudi Arabia and Oman, said that operations at its Middle East stations have continued under “appropriate safety and security protocols”.

Sats said that it “has not experienced any material interruption to (its) Middle East operations” since Feb 28, when Israel and the US launched air strikes on Iran, plunging the Middle East into renewed conflict. Several countries in the region have closed their airspaces, leading airlines to cancel or divert flights.

The company noted that while cargo volume handled by its Saudi Arabia stations increased by 12 per cent from 2024 to 2025, this accounts for only a “small part” of its global tonnage.

Sats said that it is equipped to navigate the supply chain disruptions and shifting trade flows that have arisen as a result of airspace closures in some Gulf states.

“While flight disruptions may temporarily delay some shipments, air cargo typically moves through alternative routes as supply chains adjust.”

Sats noted that its facilities in Saudi Arabia and Oman give it a presence in countries where the airspace remains open and can serve as alternate gateways to Gulf Cooperation Council (GCC) countries affected by airspace closures.

It added that it is prepared to support the movement of emergency supplies from air hubs in Saudi Arabia and Oman to the GCC.

“As the situation in the Middle East adjusts to a new dynamic, we will leverage Sats’ global network to minimise disruptions to customers,” Sats said, adding that it will “work closely with airline and logistics partners to facilitate the safe handling, storage and onward movement of cargo as routes and schedules evolve”.

The company added that it is in “close contact” with its airline customers and will continue to adjust operations “in line with how trade lanes evolve”.

Sats also said that its staff in the Middle East – including Singaporeans deployed there – are safe, and that “morale remains high”.

Earlier this week, Phillip Securities upgraded its call for Sats to “buy” and lifted its target price by 15.6 per cent to S$4.44, saying it did not expect the war to have a material impact on the group’s operations due to its global network of customer relationships.

The brokerage raised its forecast for Sats’ FY2026 profit after tax and minority interests by 13 per cent.

Similarly, CGS International on Tuesday noted that Sats is positioned for long-term growth despite short-term concerns from the conflict in the Middle East. It reiterated its “add” call on Sats, with its S$4.53 target price unchanged.

Sats shares fell 0.5 per cent or S$0.02 to close at S$3.65 on Friday, after the news.