Singapore Airlines Group: Forward passenger bookings 'tracking closely' against capacity growth

Singapore Airlines Group reported (31-Jul-2019) the following outlook for 2019:

• Passenger bookings in the forward months are "tracking closely" against capacity growth, supported by premium cabin traffic to key markets;
• Airfreight demand has "softened" amid ongoing trade disputes and uncertain global economic conditions;
• Headwinds also cloud the outlook for passenger demand over the longer term;
• The group will "actively capture" revenue opportunities and exercise cost discipline to boost profitability in this "challenging macroeconomic environment";
• Fuel price volatility is expected to persist in the near term, but the group's strong hedge position will help to mitigate any spike in prices;
• For the Q2FY2020, the group has hedged 79% of its fuel requirements in MOPS at a weighted average price of USD75;
• For the remainder of FY2020, the group has hedged 70% of its fuel requirements in MOPS and 5% in Brent at weighted average prices of USD76 and USD52 respectively;
• The group will continue to enter into longer dated hedges extending to FY2024/25;
• The grounding of the Boeing 737 MAX 8 fleet has disrupted the group's operations and rate of expansion;
• While the fleet remains out of service, the group continues to take active measures to mitigate the effects of the grounding. [more - original PR]