SIA Group operating profit up 14% in 1QFY2014, competition to drive yield weaker

SIA Group revenue up 2% - financial highlights for three months ended 30-Jun-2013:

• Revenue: SGD3840 million (USD3075 million), +1.7% year-on-year;
• Costs: SGD3759 million (USD3010 million), +1.4%;
• • Fuel: SGD1441 million (USD1154 million), -4.0%;
  • Labour: SGD591.3 million (USD473.5 million), +2.3%;
• Operating profit: SGD81.7 million (USD65.4 million), +13.5%;
• • SIA: SGD89 million (USD71.3 million), +4.7%;
  • SIA Engineering: SGD28 million (USD22.4 million), -17.6%;
  • SilkAir: SGD14 million (USD11.2 million), -22.2%;
  • SIA Cargo: SGD40 million (USD32.0 million), compared to a loss of SGD49 million (USD39.2 million);
• Net profit: SGD121.8 million (USD97.5 million), +56.2%;
• Passenger numbers:
• • SIA: 4.6 million, +1.6%;
  • SilkAir: 864,000, +4.1%;
• Passenger load factor:
• • SIA: 78.0%, -1.5 ppt;
  • SilkAir: 69.6%, -6.8 ppts;
• Passenger breakeven load factor:
• • SIA: 82.0%, +1.3 ppt;
  • SilkAir: 69.5%, -5.5 ppts;
• Passenger yield:
• • SIA: SGD 11.1 cents (USD 8.9 cents), -2.6%;
  • SilkAir: SGD 14.1 cents (USD 11.3 cents), +3.7%;
• Cargo volume:
• • SIA Cargo: 277,500 tonnes, -3.9%;
• Cargo load factor:
• • SIA Cargo: 62.5%, -0.3 ppt;
• Cargo breakeven load factor: 68.8%, stable;
• Cargo yield: SGD 32.7 cents (USD 26.2 cents), -5.5%;
• Total assets: SGD22,966 million (USD18,390 million);
• Cash and bank balances: SGD 5600 million (USD4485 million). [more - original PR]

SIA Group: "The Group's operating environment continues to be impacted by the uncertain global economic climate and high fuel prices. Forward passenger bookings for the next few months are expected to be higher against the same period last year and in line with the planned increase in passenger capacity. However, yields are expected to be weaker as a result of the intense competitive environment. On the cargo front, demand is expected to remain depressed, in turn placing pressure on loads and yields." Source: Company statement, 25-Jul-2013.