Singapore Airlines outlook brightens as profits, yields improve. New connectivity strategies emerge
Singapore Airlines Group has reported improved profits for the quarter and year ending 31-Mar-2015 (FY2015) driven by a recovery in yields. The SIA mainline operation, full-service regional subsidiary SilkAir and SIA Cargo all recorded improvements in their operating performance for FY2015, although SIA Cargo remained in the red.
The SIA Group should be able to boost profitability further in FY2016 driven partially by fuel cost reductions. But market conditions remain relatively challenging and profits are unlikely to return to pre global financial crisis levels.
Mainline capacity will again be flat in FY2016 and there should be an opportunity to boost yields further at the parent airline as premium economy is introduced. But the group is accelerating capacity expansion at SilkAir and long-haul LCC subsidiary Scoot, which could put pressure on yields and load factors in some markets.
Read More
This CAPA Analysis Report is 3,671 words.
You must log in to read the rest of this article.
Got an account? Log In
Create a CAPA Account
Get a taste of our expert analysis and research publications by signing up to CAPA Content Lite for free, or unlock full access with CAPA Membership.
Inclusions | Content Lite User | CAPA Member |
---|---|---|
News | ||
Non-Premium Analysis | ||
Premium Analysis | ||
Data Centre | ||
Selected Research Publications |