SIA Group reports significant profit declines in 1QFY2015

SIA Group revenue down 4% - financial highlights for three months ended 30-Jun-2014:

• Revenue: SGD3682 million (USD2939 million), -4.1% year-on-year;
• Total operating costs: SGD3643 million (USD2908 million), -3.1%;
• • Fuel: SGD1373 million (USD1096 million), -4.7%;
  • Labour: SGD578.9 million (USD462.1 million), -2.1%;
• Operating profit: SGD39.5 million (USD31.5 million), -51.7%;
• • Singapore Airlines: SGD45 million (USD35.9 million), -49.4%;
  • SIA Engineering: SGD21 million (USD16.8 million), -25.0%;
  • SilkAir: SGD2 million (USD1.6 million), -85.7%;
  • SIA Cargo: (SGD18 million) (USD14.4 million), compared to a loss of SGD40 million (USD31.9 million) in p-c-p;
• Net profit: SGD34.8 million (USD27.8 million), -71.4%;
• Passenger numbers:
• • SIA: 4.7 million, +17%;
  • SilkAir: 870,000, +0.7%;
• Cargo volume: 278,500 tonnes, +0.4%;
• Passenger yield:
• • SIA: SGD 10.9 cents (USD 8.7 cents), -1.8%;
  • SilkAir: SGD 13.3 cents (USD 10.6 cents), -5.7%;
• SIA Cargo yield: SGD 33.0 cents (USD 26.3 cents), +0.9%;
• Passenger load factor:
• • SIA: 77.7%, -0.3 ppt;
  • SilkAir: 69.5%, -0.1 ppt;
• Passenger breakeven load factor:
• • SIA: 79.8%, -8.2 ppts;
  • SilkAir: 72.9%, +3.4 ppts;
• Cargo load factor: 62.4%, -0.1 ppt;
• Breakeven cargo load factor: 65.5%, -3.3 ppts;
• Total assets: SGD23,420 million (USD18,696 million);
• Total debt: SGD1454 million (USD1161 million). [more - original PR]

*Based on the average conversion rate at USD1 = SGD1.2527

SIA Group: "The outlook for the air transportation industry has become more challenging with continuing uncertain global economic climate, geo-political concerns in the region and elevated fuel prices. Load factors in the current quarter are expected to be stable year-on-year. Aggressive fares and capacity injections from competitors will continue to place pressure on yields. Overcapacity in the market will continue to impact the cargo business, notwithstanding a slow recovery in airfreight demand. SIA Cargo is targeting specific product segments and traffic lanes to boost performance." Source: Company statement, 30-Jul-2014.