Financial Round Up
SIA hit by falling yields
June 10th 2014
Singapore Airlines this month announced a 60% drop in its fiscal fourth-quarter earnings as competition from the budget and Gulf carriers has led to a continuous decline in fares. Read More »
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Passenger yield fell 2.6% to 11.1 Singapore cents in the recently ended financial year and load factor decreased by 0.4% to 78.9%. According to SIA a minimum load factor of 82% is needed to break even.
Nevertheless, SIA’s operating profit for the financial year 2013-14 stands at S$259 million (~US$207.2 million), an increase of 13.1% over last year.
SIA further hopes that its fully-owned low-cost units SilkAir and Scoot, as well as Tiger Airways – in which it owns a 40% equity stake – will compete favorably with the regional LCC competition and add to the parent company’s bottom line.
