News
Profit outlook improves, SIA unveils new premium economy cabin
February 16th 2015
In its third quarter ended December 31, profit at the Singapore Airlines (SIA)Group soared 305%, to $203 million, boosted by a $120 million gain from the conversion of Tigerair into a subsidiary. Read More » At the operating level, the group's year-on-year profit dropped 2.6%, to $147 million as fierce competition put pressure on yields. Mainline SIA fought the toughest battle, with its operating profit plunging 33% to $87 million. Subsidiaries. SIA Cargo and regional carrier, SilkAir, lifted operating profits, while it was flat at SIA Engineering.
SIA unveiled its premium economy cabin, to be introduced later this year on its A380 and B777-300ER fleets, and on the 20 A350s from early 2016. Premium economy will be in a 2-4-2 configuration on all three aircraft, featuring a 38-inch seat pitch, a 13.3-inch screen, an upgraded meal service and free-flowing champagne throughout the flight.
The reconfigurations will lead to a 66 and 44 seat reduction on the A380 and B777-300ER,respectively. It follows that SIA’s ASKs in the next financial year will see an overall drop as economy seats are cut to make room for premium economy rather than business and first class seats. SIA said it will maintain its ‘premium image’ and expected its low-cost subsidiaries to pick up the falloff from economy class.
Scoot, SIA’s long-haul LCC, last week launched commercial B787-9 flights from Singapore to Perth. Scoot, under the helm of Campbell Wilson, will be the first carrier to operate an all-B787 fleet by August this year.
