The Singapore Airlines Group increased its profit more than 24 per cent during the second quarter of the current financial year, earning an operating profit of S$87 million, an increase of $17 million.
Revenue grew S$107 million (+2.8 per cent) to S$3,901 million on the back of five per cent growth in passenger carriage. The result was partially offset by a decline in yields of 3.5 per cent, which the airline attributes to promotional activities amid intense competition and the continued strength of the Singapore dollar.
The Group’s net profit for the second quarter was S$160 million, an improvement of some 77.8 per cent to $70 million, mainly attributable to the higher operating profit, share of profits from associated companies and gains from the sale of aircraft.
Three companies with the Group were profitable. The parent airline improved its profit to S$97 million (up from S$84 million profit in Q2 2012), SIA Engineering remained in profit though down on last year, and SilkAir reduced its profit from S$19 million in the same period last year to S$8 million. The regional airline’s result was affected by capacity increases outpacing passenger growth. Consistent with global airfreight trends, SIA Cargo posted an operating loss of S$31 million, representing an improvement over last year’s S$50 million loss.
During the quarter SIA took delivery of two A330-300s and two B777-300ERs, while it disposed of one B777-200 and decommissioned one B777-200 in preparation for lease to Scoot and one A340-500 in preparation for sale to Airbus, the A340s operating the nonstop services to Los Angeles, which ceased on October 20 and flights to Newark terminating after November 23.
At September 30, the SIA’s fleet comprised 103 passenger aircraft – 56 B777s, 24 A330-300s, 19 A380-800s and four A340-500s, with an average age of six years and seven months. SilkAir’s operating fleet comprised 17 A320-200s and six A319-100s. In October, SilkAir took delivery of the last A320-200 aircraft on order.
Meantime Singapore Airlines customers will benefit from an increase in the checked-in baggage allowance from November 15 for all SIA and SilkAir flights.
Checked-in baggage allowances will increase by 10kg for all classes of travel. Customers will be entitled to free baggage allowances of 50kg in Suites and First Class, 40kg in Business Class and 30kg in Economy Class.
For flights to and from the US, where a per-piece allowance applies, customers travelling in Suites, First Class and Business Class will be entitled to check-in two pieces of luggage of up to 32kg each, up from 23kg previously.
KrisFlyer Elite Gold and Star Alliance Gold members will continue to receive the additional 20kg baggage allowance across all travel classes, or one extra piece of checked-in baggage when travelling to or from the US and Brazil.