Singapore Airlines Q1 Profit Improves

July 29, 2015

Singapore Airlines reported a stronger first-quarter profit, on lower fuel costs and the sale of seven Airbus A350 production slots

First-quarter net profit was SGD$91.2 million (USD$66.6 million) for the three months to end-June, up from SGD$34.8 million a year before. Revenues were up slightly at SGD$3.73 billion versus SGD$3.68 billion.

Operating profit at the flagship full-service carrier increased to SGD$108 million from SGD$45 million.

SIA's long-haul low-cost subsidiary Scoot lost SGD$20 million during the quarter, down from a loss of SGD$25 million a year before. Its cargo business also remained in the red.

SIA said has agreed to a request from Airbus to release seven of its A350-900 orders back to the aircraft manufacturer.

This reduces the number of A350s on order to 63, it said, in a series of adjustments to orders and deliveries to meet the immediate needs of the airline and the plane maker. Its purchase options for 20 A350-900s remain unchanged, the airline said.

The carrier also brought forward the deliveries of some of the other A350-900s it has on order and can extend the leases on some A330-300s it has in service, to meet its fleet renewal and growth plans, SIA said.

The airline also has orders for Boeing 777-300ERs and 787-10s, as well as Airbus A380s.

Looking ahead, SIA said that passenger and air cargo yields would remain under pressure in the July-September quarter due to a competitive environment and over-capacity.

(Reuters)