Singapore Airlines Reports Stronger Second Quarter
Singapore Airlines brought in a second quarter net profit of SGD$189.9 million (USD$139.3 million), almost three times last year’s result.
The Singapore flag carrier’s operating profit for the quarter to end September rose $123.5 million to $232.6 million, a 112.8 percent increase, on a $194.9 million lift in revenue to $3.85 billion. Expenditure was up by $71.4 million in Q2 at $3.62 billion.
The bulk of the operating profit increase came from the parent airline - $170 million, up from $79 million - as it grew RPK passenger traffic by 2.3 percent for the period. ASM capacity rose by just 0.5 percent, with load factor rising 1.4 percentage points as a result. Yield, however, dropped 2 percent to 10 Singapore cents.
Another bright spot for the airline was its cargo division which reported an operating profit of $26 million, from a loss of $11 million in the same quarter last year. An improvement in trade conditions was credited with the profit as it carried 5.4 percent more freight and improved yield by 9.1 percent.
For the first half, SIA reported a $425 million net profit, $103.5 million up on last year. Group operating profit rose 69.9 percent to $513.4 million as a result of the strong second quarter.
SIA continues to add new aircraft to its fleet and retire older planes. Boeing 777-200s are being withdrawn from service as Airbus A350s are delivered. The company’s five oldest A380s are also being readied for retirement as new replacements arrive.
Low cost unit Scoot received a new Boeing 787-8 as it continues its expansion, with a Singapore to Honolulu service launching in December.
The airline warned of headwinds, as competitors “add significant capacity in key markets.” It said yields continue to be under pressure, despite some stability in recent months.
At the end of September, Singapore Airlines operated 108 passenger aircraft - 52 777s, 22 A330-300s, 17 A380-800s and 17 A350-900s - and carried 9.69 million passengers during the first half. Group airlines including Scoot and short-haul unit SilkAir took the total carried to 16.52 million.