SIA profits down in 4QFY2011 as costs rise

Singapore Airlines revenue up 8% - financial* highlights:

• Three months ended 31-Mar-2011:
  • Revenue: USD2893 million, +8% year-on-year;
  • Costs: USD2759 million, +11%;
    • Fuel: USD999.3 million, +24.3%;
    • Labour: USD460.9 million, +15.4%;
  • Operating profit: USD133.7 million, -31.2%;
  • Net profit: USD137.9 million, -38.5%;
  • Passenger numbers: 4.1 million, +0.6%;
  • Passenger load factor: 75.5%, -4.5 ppts;
  • Passenger breakeven load factor: 75.2%, -2.3 ppts;
  • Passenger yield: USD9.76 cents, +9.0%;
  • Passenger costs per ASK: USD 7.34 cents, +5.8%;
  • Cargo volume: 280,400 tonnes, +2.7%;
  • Cargo load factor: 62.6%, -2.2 ppts;
  • Cargo breakeven load factor: 64.7%, +0.5 ppt;
  • Cargo yield: USD 28.07 cents, -0.3%;
  • Cargo costs per ATK: USD 18.15 cents, +0.4%;
• 12 months ended 31-Mar-2011:
  • Revenue: USD11,715 million, +14%;
  • Costs: USD10,690 million, +5%;
    • Fuel**: USD3690 million, +9.1%;
    • Labour: USD1789 million, +2.7%;
  • Operating profit: USD1025 million, +1917%;
    • SIA Engineering: USD109.7 million, +23.6%;
    • SIA Cargo: USD121.8 million, compared with a loss of USD116.9 million in p-c-p;
    • SilkAir; USD97.6 million, +147%;
  • Net profit: USD880.8 million, +406%;
  • Total assets: USD19,796 million, +9.2%;
  • Cash and bank balances: USD5996 million, +66.2%;
  • Total debt: USD1644 million, +52.3%;
  • Passenger numbers: 16.6 million, +1.0%;
  • Passenger load factor: 78.5%, +0.1 ppt;
  • Passenger breakeven load factor: 74.8%, -7.9 ppts;
  • Passenger yield: USD 9.60 cents, +14.4%;
  • Passenger costs per ASK: USD 7.18 cents, +3.5%;
  • Cargo volume: 1.2 million tonnes, +3.0%;
  • Cargo load factor: 64.0%, +0.6 ppt;
  • Cargo breakeven load factor: 61.6%, -6.8 ppts;
  • Cargo yield: USD 29.20 cents, +13.1%;
  • Cargo costs per ATK: USD 18.00 cents, +1.8%. [more]

*Based on the conversion rate USD1 = SGD1.23985
**Excluding hedging

SIA: "The year ahead is expected to be challenging for the airline industry. The uncertain global economic outlook is manifested by the recent Standard & Poor downgrade of the US debt outlook from stable to negative, and continual fears of a sovereign debt crisis in Europe. In addition, the concerns over nuclear radiation in Japan following the March 11 earthquake continue to impact air traffic to and from Japan. These effects are reflected in forward bookings, indicating near term weakness in load factors," Company statement. Source: Singapore Airlines, 12-May-2011.