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Singapore Airlines profit increases but warns of capacity overload
November 10th 2017
“Headwinds remain as competitors mount significant capacity in key markets. Read More » Yields continue to be under pressure, despite some stabilisation in recent months,” Singapore Airlines Group (SIA Group) cautioned when it presented its first half results on Tuesday.
To prepare for the testing times ahead, SIA Group said it was investing in more modern and fuel efficient aircraft and was expanding the SIA legacy carrier and the Scoot low-cost carrier network.
The airline group said it would “continue to exercise nimbleness and flexibility in deploying the various vehicles in its portfolio to cater to opportunities in the appropriate markets”.
The SIA Group’s first half results were much better than those of the previous period a year ago. The group has reported a net profit of S$425 million (US$312 million) to September 30, S$103 million, or 32.0%, higher than last year. Passenger yield, however, declined 3.1%.
SIA Cargo performed well during the six months, with 6.1% more freight carried and a yield improvement of 6.7% compared with the same months in 2016.
SIA Engineering did equally well, with revenues up 26.9% year-on-year, “largely attributable to line maintenance and aircraft and component overhaul activities”, SIA Group said Tuesday.
