SINGAPORE (Nov 7): Singapore Airlines (SIA) has reported earnings of $190 million for 2Q17/18 ended Sept, up nearly three times from its earnings of $65 million in the same period a year ago on stronger operating results.
Group revenue for the quarter rose 5.5% to $3.85 billion from a year ago.
The stronger topline came on the back of a $90 million improvement in operating revenue from its parent airline company, which was partially contributed by higher passenger flown revenue on higher passenger traffic as well as higher other incidental income.
As such, operating profit for 2Q17/18 trebled to $232 million as the improvement in revenue surpassed a $72 million increase in expenditure.
Overall, the group’s parent airline company and SIA Cargo posted earnings growth over 2Q, while Scoot and SilkAir recorded weaker earnings with continued investment for expansion.
The latest quarter brings SIA’s earnings for 1H17/18 to $425 million, representing a 32% improvement from $321.5 million previously as a result of higher operating profit and lower share of losses from associated companies.
This was in spite of the absence of last year’s gain on SIA Engineering’s divestment of its 10% stake in Hong Kong Aero Engine Services Ltd (HAESL) and special dividends received from HAESL.
SIA is declaring an interim dividend of 10 cents per share for 1H17/18, which will be paid on Dec 5 to shareholders as of Nov 23 this year.
In its outlook, the group says headwinds will remain as its competitors mount significant capacity in key markets, while it expects yields to continue facing pressure.
SIA adds that it is taking delivery of modern and fuel-efficient aircraft, and further expanding its network across the low-cost and full-service market segments, and will continue to exercise nimbleness and flexibility in deploying the various vehicles in its portfolio to cater to opportunities in the appropriate markets.
Noting that its three-year transformation programme is progressing on track, the group is also in the midst of identifying new opportunities for revenue generation, re-structuring of its cost base and enhancement of organisational effectiveness under the programme.
Shares in SIA closed 7 cents lower at $10.32 on Tuesday.
