Singapore Airlines has reported jump in full-year profits for the financial year ending 31 March. The group saw operating income hit SG$1.27 billion (US$1.02 million) for the 12-month period, compared to just SG$63.2 million in 2009-10 – an increase of nearly 2,000%. Net profit surged 406% to SG$1.09 billion as revenue increased 14% to SG$$14.53 billion following a recovery in traffic since the end of the global economic crisis.
Group expenditure actually rose 5% year-on-year to $13.25 billion, with SIA’s fuel costs jumping 24%, or SG$877 million, as jet fuel prices surged. This was partially offset however, by a smaller loss from fuel hedging (SG$62 million, compared to SG$558 million in the previous financial year. Of the group’s operations, the main national passenger carrier, Singapore Airlines earned an operating profit of SG$851 million during the 12-month period, marking a return to profit following the SG$39 million operating loss it suffered in 2009-10. SIA Engineering’s operating profit climbed 24% to SG$136 million, while SIA Cargo increased 4% to SG$151 million. Low-cost carrier SilkAir achieved an impressive 147% jump in operating profits, from SG$49 million in 2009-10 to SG$121 million last year.
In its outlook for the 2011-12 financial year, SIA said that it expects the next 12 months to be “challenging”. It identified an uncertain global economic outlook, concerns over nuclear radiation in Japan and rising jet fuel prices as key factors affecting the industry this year.
“The twin challenges of near term weakness in load factors and high fuel prices will adversely affect operating performance of airlines. The company remains committed to staying lean and competitive