SIA Group reports strong profit growth, SIA Cargo demand and yield to remain under pressure

SIA Group revenue up 6% - financial highlights for three months ended 30-Jun-2012:

• Revenue: SGD3777 million (USD2990 million), +5.6% year-on-year;
• Costs: SGD3705 million (USD2933 million), +3.9%;
  • Fuel: SGD1501 million (USD1188 million), +4.4%;
  • Labour: SGD578.1 million (USD458 million), +9.1%;
• Operating profit (loss): SGD72 million (USD57.0 million), +555%;
  • Parent airline company: SGD85 million (USD67.3 million), compared to a loss of SGD36 million (USD28.5 million) for the p-c-p;
  • SIA Engineering: SGD34 million (USD26.9 million), -2.9%;
  • SilkAir: SGD18 million (USD14.3 million), -14.3%;
  • SIA Cargo: (SGD49 million) (USD38.8 million), compared to a loss of SGD14 million (USD11.1 million) for the p-c-p;
• Net profit: SGD78 million (USD61.7 million), +74.5%;
• Passenger numbers: 4.5 million, +8.5%;
  • SilkAir: 830,000, +15.3%;
• Passenger load factor: 79.5%, +3.9 ppts;
  • SilkAir: 76.4%, +0.1 ppt;
• Breakeven passenger load factor: 80.7%, +2.7 ppts;
  • SilkAir: 75%, +2.1 ppts;
• Passenger yield: SGD 11.4 cents (USD 9.0 cents), -3.4%;
  • SilkAir: SGD 13.6 cents (USD 10.8 cents), -5.6%;
• Passenger cost per ASK: SGD 9.2 cents (USD 7.3 cents), stable;
  • SilkAir: SGD 10.2 cents (USD 8.1 cents), -2.9%;
• Cargo volume: 288,700 tons, -2.9%;
• Cargo load factor: 62.8%, -1.9 ppts;
• Cargo breakeven load factor: 68.8%, +1.9 ppts;
• Cargo yield: SGD 34.6 cents (USD 27.4 cents), -2.8%;
• Cargo cost per ATK: SGD 23.8 cents (USD 18.8 cents), stable;
• Total assets: SGD22,188 million (USD17,561 million), +0.7% when compared to period ended 31-Mar-2012;
• Total debt: SGD1069 million (USD846.1 million), -0.8% when compared to period ended 31-Mar-2012. [more - original PR]

*Based on the average conversion rate at USD1 = SGD1.2635 for the period

SIA: "The global economy remains uncertain as Europe struggles to contain its debt crisis, while the United States faces a sluggish recovery. This has negatively impacted business confidence and the outlook for travel demand. Promotional efforts undertaken to boost carriage add downward pressure on yields, especially in Europe and the United States. Forward indicators for air freight signal a weak outlook for the cargo business. SIA Cargo faces pressure with respect to both demand and yields." Source: Company statement, 25-Jul-2012.