40% jump in fuel price overshadows SIA’s progress in revenue

©Singapore Airlines

The SIA Group has reported an operating profit of S$426 million in the first half of the 2018/19 financial year, a decline of S$336 million (-44.1%) from last year’s restated profit of S$762 million. Excluding one-off items of S$175 million, however, the drop in operating profit would have been S$161 million (-27.4%). The decline was a consequence of a S$379 million (+20.4%) increase in fuel costs.

Flown revenue for the Group rose by S$422 million, contributed by passenger flown revenue (+S$346 million or +5.8%) and cargo flown revenue S($76 million or +7.4%). Passenger flown revenue was lifted by an 8.8% increase in traffic, outpacing growth in capacity of 5.4%, driving passenger load factor for the Group airlines in aggregate to rise 2.6% points to 83.6%. Passenger unit revenue (measured in revenue per available seat-kilometres) grew 1.3% as transformation efforts yielded positive results. Cargo flown revenue was S$76 million (+7.4%) higher on stronger yields (+9.7%), partially offset by lower loads carried (-2.3%).

Revenue contribution from engineering services fell S$19 million (-7.9%) on lower airframe and fleet management activities. Together with other miscellaneous changes in revenue, and in the absence of non-recurring revenue, Group revenue improved by S$195 million (+2.5%) to S$7,907 million.

Group net profit fell to S$196 million, S$435 million (-68.9%) lower than a year ago.

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