SIA Group remains profitable in FY2010

SIA Group revenue gains 0.4% - financial/traffic highlights:

• Three months ended 31-Mar-2010:
  • Revenue: USD2,367 million, +0.4% year-on-year;
  • Costs: USD2,196 million, -7.6%;
    • Fuel: USD707.0 million, -23.4%;
    • Labour: USD351.3 million, -13.0%;
  • Operating profit: USD171.0 million, compared to a loss of USD19.9 million in the previous corresponding period;
    • Singapore Airlines: USD112.8 million, +1,036%;
    • SIA Engineering: USD29.1 million, +51.9%;
    • SilkAir: USD22.0 million, +82.4%;
    • SIA Cargo: USD5.7 million, compared to a loss of USD87.3 million in the previous corresponding period;
  • Net profit: USD197.2 million, +563.5%;
  • Passenger numbers: 4.1 million, +4.1%;
  • Passenger load factor: 80.0%, +8.8 ppts;
  • Passenger breakeven load factor: 77.5%, +0.4 ppt;
  • Passenger yield: USD 7.87 cents, -5.9%;
  • Passenger cost per ASK: USD 6.10 cents, -5.5%;
  • Cargo volume**: 273,000 tonnes, +6.3%;
  • Cargo load factor: 64.8%, +8.3 ppts;
  • Cargo breakeven load factor: 64.2%, -10.8 ppts;
  • Cargo yield: USD 24.76 cents, +19.5%;
  • Cargo cost per ASK: USD15.89 cents, +2.3%;
• 12 months ended 31-Mar-2010:
  • Revenue: USD9,015 million, -20.6%;
  • Costs: USD8,970 million, -16.2%;
    • Fuel: USD2,976 million, -34.5%;
    • Labour: USD1,532 million, -15.2%;
  • Operating profit (loss): USD44.8 million, -93.0%;
    • Singapore Airlines: (USD27.7 million), compared to a profit of USD583.8 million in the previous corresponding period;
    • SIA Engineering: USD78.3 million, -2.2%;
    • SilkAir: USD34.9 million, +15.6%;
    • SIA Cargo: (USD102.9 million, compared to a loss of USD173.8 million in the previous corresponding period;
  • Net profit: USD153.1 million, -79.7%;
  • Passenger numbers:
  • Passenger load factor: 78.4%, +1.9 ppt;
  • Passenger breakeven load factor: 82.7%, +9.1 ppts;
  • Passenger yield: USD 7.38 cents, -16.8%;
  • Passenger costs per ASK: USD 6.10 cents, -6.5%. [more][more - Perspective]

*Based on the conversion rate at USD1 = SGD1.40956
**SIA Cargo

SIA Group Board recommended a final dividend payment of SGD0.12 per share to be paid on 17-Aug-2010 for the financial year ended 31-Mar-2010.

SIA Group: "The Group's uplift of jet fuel in FY2011 is projected to be 33 million barrels. At this point, the intention is to hedge at least a fifth of the required uplift. Advance bookings for travel in the year ahead are encouraging, especially in Business Class. Similarly, forward indicators suggest that the recent recovery in volumes of air cargo will hold up in the near term. Yields for both passenger and cargo should keep pace with the growth in demand. The sustainability of this improvement depends on developments in the world economy and on business and consumer confidence," Company statement. Source: SIA Group, 21-May-2010.