Regional Round-Up
SIA’s results suffer as regional LCCs multiply
June 1st 2014
Singapore Airlines (SIA) has announced a second quarter of declining profits and has recorded a third consecutive year of reduced yields, in an environment the leading carrier describes as “continuing to be challenging, with intense competition in many areas, and economic uncertainty in key markets”. Read More »
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The SIA group, whose main companies are SIA, SIA Engineering, SilkAir and SIA Cargo, reported a group profit for the year of S$359 million (US$269.25 million).
Tigerair, which is part-owned by the Group, reported losses of S$118 million, a S$9 million increase over the previous year. The SIA group owns 40% of Tigerair. The challenges faced by SIA and its partner companies were emphasized by SIA’s 60% decline, or S$27 million, in profit for its fourth quarter, to March 31 this year.
SIA said fuel prices are expected “to remain at elevated levels, which produces a continual challenge to Group earnings.
Cargo yield is also predicted to remain weak in a sector that is carrying too much capacity.
The company forecasts that airline bookings will match capacity expansion this year, but that “yields are expected to remain under pressure due to promotional activities taken to support loads and other airlines offering aggressive fares while increasing capacity”.
