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Singapore records profit increase but warns of tough conditions

written by australianaviation.com.au | May 9, 2014
SIA has warned that low yields and economic uncertainty will continue to affect its profitability. (Andrew McLaughlin)
SIA has warned that low yields and economic uncertainty will continue to affect its profitability. (Andrew McLaughlin)

Singapore Airlines Group has recorded a 13.1 per cent increase in its operating profit to SG$259m (A$222m) for the year ended March 31.

Revenue across the group, which includes Singapore Airlines, SIA Engineering, regional carrier SilkAir, and SIA Cargo, rose one per cent to SG$15.24bn (A$13.04bn) for the year on the back of higher passenger revenue, but was offset by a decline in cargo revenue.

The carrier warned that economic uncertainty and lower yields had contributed to a SG$60m loss in the final quarter of the year.

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“The operating environment for the group continues to be challenging with intense competition in many areas, and economic uncertainty in key markets,” the airline said in a statement. “Passenger bookings in the current quarter are expected to match the planned increase in capacity. However, yields are expected to remain under pressure because of promotional activities undertaken to support loads, and other airlines offering aggressive fares while increasing capacity.”

A breakdown of the results saw Singapore Airlines record a profit of SG$256m (A$220m) for the year, a profit of SG$116m (A$99m) by SIA Engineering, a profit of SG$35m (A$30m) by SilkAir, and a loss of SG$100m (A$85.6m) by SIA Cargo.

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Singapore records profit increase but warns of tough conditions

written by australianaviation.com.au | May 9, 2014
SIA has warned that low yields and economic uncertainty will continue to affect its profitability. (Andrew McLaughlin)
SIA has warned that low yields and economic uncertainty will continue to affect its profitability. (Andrew McLaughlin)

Singapore Airlines Group has recorded a 13.1 per cent increase in its operating profit to SG$259m (A$222m) for the year ended March 31.

Revenue across the group, which includes Singapore Airlines, SIA Engineering, regional carrier SilkAir, and SIA Cargo, rose one per cent to SG$15.24bn (A$13.04bn) for the year on the back of higher passenger revenue, but was offset by a decline in cargo revenue.

The carrier warned that economic uncertainty and lower yields had contributed to a SG$60m loss in the final quarter of the year.

Advertisement
Advertisement

“The operating environment for the group continues to be challenging with intense competition in many areas, and economic uncertainty in key markets,” the airline said in a statement. “Passenger bookings in the current quarter are expected to match the planned increase in capacity. However, yields are expected to remain under pressure because of promotional activities undertaken to support loads, and other airlines offering aggressive fares while increasing capacity.”

A breakdown of the results saw Singapore Airlines record a profit of SG$256m (A$220m) for the year, a profit of SG$116m (A$99m) by SIA Engineering, a profit of SG$35m (A$30m) by SilkAir, and a loss of SG$100m (A$85.6m) by SIA Cargo.

Steer your own in-flight experience – available on print and digital Whether our classic glossy magazine in your letterbox, daily news updates in your inbox, peeling back a few layers in the podcast or our monthly current affair reports, you can count on us to keep you up to date. Sign up today for just $99.95 for more exclusive offers here. Subscribe now at australianaviation.com.au.

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