Scoot approaches profitability & becomes SEAsia’s top performing long haul LCC, boosting SIA outlook

Singapore based LCC Scoot is closing in on profitability and has become the best performing long haul LCC in Southeast Asia only three years after it was launched by the Singapore Airlines (SIA) Group. Scoot's losses have narrowed significantly in recent quarters and the LCC is now profitable when excluding the impact of fuel hedging losses.

The Singapore based carrier outperformed all five other Southeast Asian long haul LCCs in the quarter ending 30-Sep-2015. Load factors are the highest in its peer group and Scoot is starting to see an improvement in yields.

Scoot's outlook for 2016 is bright as it starts to enjoy the full benefits of its transition to 787s, lower fuel prices and a closer relationship with short haul LCC sister carrier Tigerair. But a 49% increase in capacity in the fiscal year starting Apr-2016 and several new route launches will likely pressure yields and could delay Scoot's ability to turn its first annual profit until the fiscal year commencing Apr-2017.