News
SIA Group posts 69% first-half net profit decrease
November 16th 2018
Singapore Airlines (SIA) Group on Wednesday reported a 68.9% year-on-year drop in first half net profit, to S$196 million (US$142 million). Read More » The Singaporean marquee airline said the profit decline was largely the result of 40% higher jet fuel costs.
SIA Group revenues in the first half to September 30 improved 2.5% year-on-year, to S$7.9 billion. Passenger revenues were up 5.8% and cargo earnings increased 7.4% during the period.
The group’s passenger traffic grew 8.8% on a 5.4% capacity gain in the first half, resulting in a load factor of 83.6%, up 2.6%, while unit revenues gained 1.3% and group passenger yield declined 2.2%.
Mainline SIA took delivery of its final A380 in the airline’s second quarter. The aircraft entered service during the quarter along with a sixth B787-10. In the interim, two of seven A350-900ULRs on firm order were added to the fleet and entered service in October. Two A330-300s and a B777-200 were removed from the operating fleet for retirement. As of September 30, mainline SIA operated 110 passenger aircraft, with capacity growth for the financial year estimated at 5%.
SilkAir removed an A319 from service in preparation for lease return, ending the quarter with 32 aircraft in operation – eight A320s, two A319s, 17 B737-800s and five B737 MAX 8s. The regional subsidiary’s capacity growth for the financial year ending March 30 is expected to be 4%.
LCC Scoot added a B787-9, as well as three A320s that had been subleased to IndiGo Airlines, to its operating fleet during the quarter, bringing the operating fleet count to 44 aircraft - 18 B787s (10 B787-8s and eight B787-9s), 24 A320s and two A319s. Capacity is forecast to grow by 16% for the fiscal year.
The operating fleet for SIA Cargo remained at seven B747-400Fs and capacity is forecast to be flat.
“Bookings in the coming months are expected to be stronger year-on-year. However, headwinds continue to persist in the form of cost pressures arising from significantly elevated fuel prices compared to a year ago, as well as keen competition in key operating markets. Notwithstanding concerns over global trade tensions, cargo demand in the near term is expected to remain healthy during the seasonal peak,” the Goh Choon Phong-led carrier said in its latest outlook.
During the results presentation Goh said the integration of SilkAir into mainline SIA was “on track” for 2020.
