SIA Group falls into the red in 4QFY2013, full year operating profit down 20%; outlook uncertain

SIA Group revenue down 1% - financial highlights:

• Three months ended 31-Mar-2013:
  • Total revenue: SGD3667 million (USD2950 million), -1.0% year-on-year;
  • Total costs: SGD3711 million (USD2986 million), stable;
    • Fuel: SGD1441 million (USD1159 million), -0.4%;
    • Labour: SGD602.9 million (USD485.1 million), +6.0%;
  • Operating profit (loss): (SGD44.2 million) (USD35.6 million), compared to a loss of SGD5.2 million (USD4.2 million) in p-c-p;
  • Net profit: SGD68.3 million (USD55.0 million), compared to a loss of SGD38.2 million (USD30.7 million) in p-c-p;
  • Passenger numbers:
    • SIA: 4.5 million, +3.6%;
    • SilkAir: 799,000, +1.9%;
  • Passenger load factor:
    • SIA: 78.6%, +1.0 ppt;
    • SilkAir: 70.3%, -5.0 ppts;
  • Passenger breakeven load factor:
    • SIA: 83.9%, +3.6 ppts;
    • SilkAir: 66.7%, +1.6 ppt;
  • Passenger yield:
    • SIA: SGD 11.2 cents (USD9.0 cents), -4.3%;
    • SilkAir: SGD 14.7 cents (USD11.8 cents), -1.3%;
  • SIA Cargo:
    • Cargo volume: 273,700 tonnes, -4.1%;
    • Cargo load factor: 63.7%, +1.8 ppt;
    • Cargo breakeven load factor: 69.4%, +2.1 ppts;
    • Cargo yield: SGD 33.0 cents (USD26.6 cents), -6.3%;
• 12 months ended 31-Mar-2013:
  • Total revenue: SGD15,098 million (USD12,149 million), +1.6%;
  • Total costs: SGD14,869 million (USD11,964 million), +2.0%;
    • Fuel: SGD5899 million (USD4747 million), +1.7%;
    • Labour: SGD2353 million (USD1894 million), +7.2%;
  • Operating profit: SGD229.2 million (USD184.4 million), -19.8%;
  • Parent airline company: SGD187 (150.5 million), +3.3%;
    • SIA Engineering: SGD128 million (USD103.0 million), -1.5%;
    • SilkAir: SGD97 million (USD78.0 million), -7.6%;
    • SIA Cargo: (SGD167 million) (USD134.4 million), compared to a loss of SGD119 million (USD95.8 million) in p-c-p;
  • Net profit: SGD378.9 million (USD304.9 million), +12.8%;
  • Passenger numbers:
    • SIA: 18.2 million, +6.1%;
    • SilkAir: 3.3 million, +8.7%;
  • Passenger load factor:
    • SIA: 79.3%, +1.9 ppt;
    • SilkAir: 73.6%, +2.1 ppts;
  • Passenger breakeven load factor:
    • SIA: 80.7%, +2.7 ppts;
    • SilkAir: 70.2%, +0.5 ppt;
  • Passenger yield:
    • SIA: SGD 11.4 cents (USD9.2 cents), -3.4%;
    • SilkAir: SGD 14.1 cents (USD11.3 cents), -2.8%;
• • SIA Cargo:
    • Cargo volume: 1.1 million tonnes, -5.1%;
    • Cargo load factor: 63.4%, -0.4 ppt;
    • Cargo breakeven load factor: 69.5%, +2.2 ppts;
    • Cargo yield: SGD 33.4 cents (USD26.9 cents), -4.3%. [more - original PR]

*Based on the average conversion rate at USD1 = SGD1.2428

SIA Group: "The global economic outlook remains uncertain with the ongoing weakness in the Eurozone and sluggish recovery in the United States. Forward passenger bookings for the next few months are almost flat compared to the same period last year. Yields are likely to remain under pressure amid weak economic sentiment, and revenues will be further diluted if key revenue-generating currencies continue to depreciate against the Singapore dollar. The cargo business faces an additional issue of overcapacity in the market, which will add pressure on loads and yields. Furthermore, fuel prices remain persistently high. Meanwhile, the Group's strong financial position will enable it to weather the many challenges and allow for continued investment in product and service enhancements." Source: Company statement, 16-May-2013.