SIA Group operating profit up 23% in 2QFY2014, forward bookings higher

SIA Group revenue up 3% - financial highlights for three months ended 30-Sep-2013:

• Revenue: SGD3901 million (USD3076 million), +2.8% year-on-year;
• Costs: SGD3814 million (USD3008 million), +2.4%;
• • Fuel: SGD1468 million (USD1157 million), -0.5%;
  • Labour: SGD600.4 million (USD473.5 million), +1.9%;
• Operating profit (loss): SGD86.9 million (USD68.5 million), +23.4%;
• • Parent airline company: SGD97 million (USD76.5 million), +15.5%;
  • SIA Engineering: SGD28 million (USD22.1 million), -12.5%;
  • SilkAir: SGD8 million (USD6.3 million), -57.9%;
  • SIA Cargo: (SGD31 million) (USD24.4 million), compared to a loss of SGD50 million (USD39.4 million) in p-c-p;
• Net profit: SGD160.6 million (USD126.7 million), +78.2%;
• Passenger numbers:
• • SIA: 4.8 million, +6.3%;
  • SilkAir: 826,000, +3.0%;
• Passenger load factor:
• • SIA: 81.1%, +1.2 ppt;
  • SilkAir: 69.0%, -3.5 ppts;
• Passenger breakeven load factor:
• • SIA: 82.7%, +2.9 ppts;
  • SilkAir: 70.5%, -0.8 ppt;
• Passenger yield:
• • SIA: SGD 11.0 cents (USD8.7 cents), -3.5%;
  • SilkAir: SGD13.9 cents (USD 11.0 cents), +2.2%;
• SIA Cargo:
• • Cargo volume: 279,800 tonnes, -4.6%;
  • Cargo load factor: 61.5%, -1.0 ppt;
  • Cargo breakeven load factor: 66.4%, -3.0 ppts;
  • Cargo yield: SGD32.1 cents (USD 25.3 cents), -1.8%;
• Total assets: SGD22,754 million (USD17,945 million);
• Cash and cash equivalents: SGD5040 million (USD3974 million);
• Total liabilities: SGD9136 million (USD7205 million). [more - original PR]

*Based on the average conversion rate at USD1 = SGD1.268

SIA Group: "The operating landscape for the airline industry remains challenging amid continued global economic uncertainty. Advance bookings for the coming months are projected to be higher compared to the same period last year on the back of efforts to boost loads. However, ongoing promotional activities necessitated by intense competition and a strong Singapore dollar are expected to place pressure on yields. Cargo demand is expected to remain flat due to weak international trade volumes and excess capacity in the market. Cargo yields are therefore likely to remain under pressure. On the cost side, fuel prices are likely to remain high and volatile." Source: Company statement, 12-Nov-2013.