SIA Group narrows first-half net loss

©Singapore Airlines

The SIA Group has reported financial performance for the first half of FY2021/22.

Group revenue rose SG$1,193 million (+73.0%) year-on-year to SG$2,827 million, attributable to improvements in both passenger and cargo segments. Passenger flown revenue grew by SG$598 million (+385.8%) on the back of the recovery in traffic, partly offset by weaker yields. Cargo flown revenue reached a record high of SG$1,875 million (+SG$635 million or +51.2%) with the progressive resumption of passenger flights contributing to the increase in cargo capacity (+49.5%) and loads carried (+61.6%).

Group expenditure fell SG$51 million (-1.5%) to SG$3,446 million. This was mainly due to the absence of the fuel hedging ineffectiveness that was recorded last year and the swing from fair value loss to gain on fuel derivatives arising from the rise in fuel prices during the first half of the year. This was mostly offset by net fuel costs which rose by SG$434 million (+115.4%) to SG$810 million, mainly due to higher fuel prices and an increase in volume uplifted to support the expansion in passenger operations.

The SIA Group recorded an operating loss of SG$619 million for the first half, an improvement of SG$1,244 million (+66.8%) from the SG$1,863 million operating loss in the previous year. For the half year ended September 30, 2021, the Group reported a net loss of SG$837 million, an improvement of SG$2,630 million (+75.9%) from the prior year. This was mainly due to better operating performance, and the absence of SG$1,630 million in non-cash items recorded last year largely from the impairment of aircraft assessed to be surplus to requirements.

Based on current published schedules, the Group expects passenger capacity to reach 43% of pre-Covid levels by December 2021. The Group network will serve just over half of the total pre-Covid points, or 73 destinations including Singapore. (£1.00 = SG$1.81 at time of publication)

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