SIA first quarter profit up 56%
Guest Writers are not employed, compensated or governed by TD, opinions and statements are from the specific writer directly
Singapore Airlines Group (SIA) achieved a sharp rise in profits in the first quarter of its financial year.
For the three months to 30 June 2013, the group recorded a net profit of SG$122 million (US$96m) – 56% more than the SG$78m it generated in the same period last year. Company revenues increased 2% to SG$3.84 billion.
SIA said the improvement was mainly due to proceeds from the sale of aircraft, plus the net gain of SG$336m from the sale of its stake in Virgin Atlantic to Delta Air Lines.
The group’s operating profit increased 14% to SG$82m, as stronger results from the mainline carrier, SIA, were pegged back by worse results from other units, including SilkAir, which saw operating profits fall 22% to SG$14m.
SIA’s traffic increased 1.6% in the first quarter, although this lagged behind a 3.5% rise in available seat capacity, resulting in a 1.5 percentage point drop in passenger load factor, to 78.0%.
SilkAir’s also suffers a demand-supply imbalance, as a 6.2% rise in passenger traffic was outpaced by a 16.6% in seat capacity. This caused load factors to drop 6.8 percentage points to a weak 69.6%.
Comments are closed.