SIA Group operating profit almost halved in 2QFY2013

SIA Group revenue up 3% - financial highlights for three months ended 30-Sep-2012:

• Revenue: SGD3794 million (USD3041 million), +2.5% year-on-year;
• Operating costs: SGD3723 million (USD2985 million), +4.1%;
  • Fuel: SGD1474 million (USD1182 million), +4.3%;
  • Labour: SGD589.1 million (USD472.2 million), +6.3%;
• Operating profit: SGD70.4 million (USD56.4 million), -42.7%;
  • Singapore Airlines: SGD169 million (USD135 million), +219%;
  • SIA Engineering: SGD66 million (USD53 million), -4.3%;
  • SilkAir: SGD37 million (USD30 million), compared to a loss of SGD34 million (USD27 million) in p-c-p;
  • SIA Cargo: SGD99 million (USD79 million), +219%;
• Net profit: SGD90.1 million (USD72.2 million), -53.6%;
• Passenger numbers:
  • Singapore Airlines: 4.5 million, +5.1%;
  • SilkAir: 802,000, +11.4%;
• Passenger load factor:
  • Singapore Airlines: 79.8%, +0.5 ppt;
  • SilkAir: 72.5%, +0.1 ppt;
• Passenger breakeven load factor:
  • Singapore Airlines: 79.8%, +1.2 ppt;
  • SilkAir: 71.3%, -0.8 ppt;
• Passenger yield:
  • Singapore Airlines: SGD 11.4 cents (USD9.1 cents), -2.6%;
  • SilkAir: SGD 13.6 cents (USD 10.9 cents), -2.9%;
• SIA Cargo volume: 293,300 tonnes, -2.1%;
• Cargo load factor: 62.5%, -1.7 ppt;
• Cargo breakeven load facto: 69.4%, +4.2 ppts;
• Cargo yield: SGD 32.7 cents (USD 26.2 cents), -4.1%;
• Total assets: SGD22,170 million (USD17,771 million), +0.6% when compared to period ended 31-Mar-2012;
• Cash and bank balances: SGD4774 million (USD3827 million), +1.5% when compared to period ended 31-Mar-2012;
• Total debt: SGD1041 million (USD834 million), -3.5% when compared to period ended 31-Mar-2012. [more - original PR]

*Based on the average conversion rate at USD1 = SGD1.2475

SIA Group: "The continuing European economic crisis is dampening global business confidence, exerting downward pressure on loads and yields of both passenger and cargo businesses. These challenging market conditions are exacerbated by high and volatile jet fuel prices. Despite the challenging environment, the Group's strong balance sheet has enabled continued investment in new aircraft and in the upgrading of products and services. The Group remains vigilant in ensuring efficient deployment of its fleet in response to changes in demand patterns. A strict cost management regime is also in place to mitigate cost pressures." Source: Company statement, 02-Nov-2012.