News
Singapore Airlines (SIA) boosts Q3 profit despite declining yields
February 5th 2016
Singapore Airlines (SIA) Group reported a 35% net profit increase, to S$275 million ($196 million), for the three months ended December 31, 2015, compared with a net profit of S$202.6 million in the corresponding year-ago period. Read More » SIA said lower fuel costs and significant performance improvements at some of its subsidiaries produced the gains.
The higher group profit was achieved despite a revenue decline of 3.9% with passenger yields falling 4.6% and cargo yield declining by 13.5%.
SIA budget subsidiary, Scoot, reported a net profit of S$18 million, reversing last year’s S$17 million loss, with passengers 37% higher on 34% increased capacity. Fellow SIA subsidiary, Tiger Airways, improved its operating profit to S$9 million compared with S$4 million in the same period in 2014.
The airline group’s regional full service carrier, SilkAir, recorded an operating profit of S$33 million, up from S$18 million but its capacity growth of 9.5% was not matched by traffic growth of 8.5%.
SIA’s first Airbus A350-900 this week completed its maiden flight and will now enter the final production phase as it prepares for delivery in the coming weeks, Airbus said. The aircraft, the first of a 67-strong order from SIA, is scheduled to enter revenue service on the Singapore-Amsterdam and Singapore-Dusseldorf routes.
