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18-May-2018 11:58 AM

Singapore Airlines Group reports improved passenger and cargo business in FY2017/18

Singapore Airlines Group reported (17-May-2018) operating profit surpassed SGD1 billion (USD745 million) in FY2017/18, ended 31-Mar-2018, fuelled by improved performance in passenger and cargo business. Net profit increased 148.1% year-on-year to SGD893 million (USD665 million), mainly attributable to the higher operating profit, the absence of Singapore Airlines Cargo's provision for competition related matters and impairment of the Tigerair brand and trademarks in FY2016/17, partially offset by the absence of SIA Engineering's gain on divestment of its 10% stake in Hong Kong Aero Engines Services (HAESL) and special dividends received from HAESL. Details include:

  • Revenue increased 6.3% to SGD15.8 billion (USD11.8 billion) with improvement in all business segments. Passenger flown revenue increased 3.6% as traffic growth of 6.3% outpaced a 3.1% decrease in passenger yield. Cargo revenue increased by SGD266 million (USD198 million) on a 5.3% increase in freight carriage and an 8.9% increase in yield. Engineering services revenue increased 12%, largely attributable to line maintenance activities;
  • Expenditure increased 3.5% to SGD14.7 billion (USD11 billion). Net fuel cost increased 4.1% as average jet fuel prices increased 18%, partially offset by a hedging gain compared to a loss in FY2016/17. Non fuel costs increased 3.3%, partly due to expansion by SilkAir and Scoot;
  • Outlook is for "strong" travel demand, but fuel prices are trending higher, "intense" competition persists in key markets and cost pressures remain. The group reported stronger advance passenger bookings for the coming months and continued yield stabilisation. Fuel price volatility is expected to persist in the coming months. Group passenger capacity is expected to grow 8% in FY2018/19. [more - original PR]

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