SIA sees first quarter turnaround

The Singapore Airlines Group returned to profitability for the quarter ending June 30, aided by rebounding passenger and cargo traffic.

The SIA Group recorded a net profit for the three months of S$253m (A$206m), compared to a loss of S$307m (A$250m) recorded during the same quarter last year. This came as Group revenues increased by 20.7 per cent to S$3.47bn (A$2.83bn), which it says reflects the recovery in load factors and higher yields. As a result, the parent airline recorded a net profit of S$136m (A$111m), while all the main aviation subsidiaries (SIA Cargo, SIA Engineering and SilkAir) all recorded operating profits.

The airline group was optimistic in its outlook, saying that advance bookings indicate year-on-year growth in passenger volumes and stronger yields are expected to continue through 2010, while resurgence in freight volumes “may be sustained in the near term, although growth may abate.”