SIA Q1 net profit down but operating profit up
Net profit at Singapore Airlines (SIA) for the first quarter fell by 8.6 per cent to $235 million, but this was mainly due to the absence of a one-off gain from a subsidiary recorded last year.
At the operating level, SIA reported a profit of $281 million in the April to June quarter, 45.6 per cent higher than the same period last year, it said yesterday.
Group revenue increased 5.6 per cent year-on-year to $3.86 billion, while spending increased 3.4 per cent to $3.6 billion. Net fuel costs rose 3.4 per cent, as a $115 million reduction in fuel hedging loss partially offset the $145 million increase in fuel cost before hedging, caused mainly by higher average jet fuel prices.
Excluding fuel, costs were up 3.4 per cent, partly attributable to expansion at SilkAir and Budget Aviation Holdings, which is the parent company of budget carriers Scoot and Tigerair.
Earnings per share fell to 19.9 cents from 21.7 cents a year earlier, while net asset value per share was $11.11 - higher than $11.07 as at March 31.
The industry remains challenging, SIA said, as the uncertain global economic climate and geopolitical concerns, coupled with overcapacity in key markets, continue to dampen yield performance.
Fuel prices are expected to remain volatile in the months ahead, as the oil market continues to adjust to demand and supply conditions. - THE STRAITS TIMES