Singapore Air Q2 Net Profit Down Two-Thirds

Singapore Airlines posted a second quarter net profit drop of 66 percent to SGD$64.9 million (USD$46.75 million).

The fall was mainly due to weaker operating results and lower dividends from long-term investments.

Operating profit for the quarter was down 15.1 percent to SGD$109.1 billion from last year’s quarter.

Operating profit from the full service carriers Singapore Airlines and SilkAir was down, but low cost units Scoot and Tiger Airways achieved small profits from prior year losses.

SIA Cargo’s operating loss deepened from SGD$3 million to SGD$11 million.

The low-cost carriers performed better due to extended networks and reduced operating expenditure, SIA said.

Revenue for the period was SGD$3.65 billion, down from the SGD$3.845 billion reported in 2015.

Group revenue RPK (revenue seat km) dipped 0.4 percent on a capacity increase (in available seat km terms) of 3.5 percent. Passenger load factor was down 3.2 percentage points at 79.9 percent in the quarter.

During the quarter, SIA received two Airbus A350s, bringing the total to five, and Scoot added a Boeing 787 to add to its existing fleet of 11.

SilkAir continued its move to an all-Boeing 737 fleet with the disposal of an Airbus A319.