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14-Feb-2018 11:45 AM

Singapore Airlines Group reports revenue improvement across all businesses in 4Q2017

Singapore Airlines Group reported (13-Feb-2018) revenue improvements in all business segments in 4Q2017. Highlights include:

  • Revenue: Increased 4.2% year-on-year. Traffic growth of 6.9% outpaced a 3.1% reduction in passenger yield. Cargo revenue increased as freight carriage grew 4.4% and yield increased 12.1%. Engineering services revenue increased 7.9%, largely attributable to line maintenance and aircraft and component overhaul activities;
  • Expenditure: Group expenditure increased 5.4% and net fuel cost increased 9.2% as average jet fuel prices increased 20.1%, partially offset by a hedging gain. Non fuel costs increased 4.1%, partly attributable to the expanded operations of SilkAir and Scoot;
  • Yield and fuel: The group said despite stabilisation of yields in recent months, yield pressure remains as competitors increase capacity in key markets with "aggressive" pricing. The "challenging" market conditions were exacerbated by recent fuel price movements. Fuel prices have been trending higher and the group expects volatility to persist in the coming months. The group hedged 40.7% of its fuel requirements at a weighted average of USD65 per barrel for 1Q2018. Longer dated Brent hedges with maturities extending to FY2022/23 cover up to 47% of the group's projected fuel consumption at average prices of USD53 to USD59 per barrel;
  • Outlook: The group's three year transformation programme is "well on track", delivering improvements in customer experience, revenue generation and operational efficiency. The group said it is "well positioned to meet the ongoing competitive challenges". [more - original PR]

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