SIA Group posts S$360 million full year profit
Singapore Airlines Group (SIA Group) on Thursday reported a net profit of S$360 million (US$259 million) for the financial year ended March 31, down 55.2% year-on-year. Read More »
The SIA Group’s weaker full-year result largely was due to a slump in the fourth quarter, to March 31, when the group recorded a net loss of S$138 million. It was the company’s first quarterly net loss in five years and an indicator of the challenges ahead for the group.
Besides a weaker operating profit, the deterioration in net profit mainly was attributable to SIA Cargo's provision for competition-related matters (S$132 million) and an absence of a refund received last year of S$117 million.
Other factors were lower dividends from long-term investments (-S$110 million), write-downs of Tigerair-related brand and trademarks (-S$98 million), losses on disposal of aircraft, spares and spare engines versus a surplus for the previous year of S$84 million and an increase in the share of losses from associated companies of S$52 million.
These were partially offset by the gain from SIA Engineering’s divestment of Hong Kong Aero Engine Services Ltd (HAESL) and special dividends received from HAESL following the sale of its 20% holding in Singapore Aero Engine Service Ltd (+$178 million).
At mainline Singapore Airlines (SIA), operating profit for the year declined 20.4% year-on-year, to US$99 million, and yield declined 3.8%. In the fourth quarter, SIA reported an operating loss of US$41 million with yield slippage of 4.7%.
SIA has decided not to extend the leases on four of its A380s. Two A330-300s, two B777-200s and one B777-200ER also are expected to be removed from the operating fleet for lease return or sale, the airline said.
Delivery of ten A350-900s is scheduled to March 31, with SIA’s fleet planned to expand to 109 aircraft for the full year, representing a capacity increase of 0.4%.