Singapore Airlines’ profit nose-dives

Singapore Airlines has posted a fiscal third-quarter net profit down 43 per cent amid significant fuel-hedging losses, shrinking demand for cargo and passenger travel. Of the parent airline’s four other business units – SATS Group, SIA Engineering, SilkAir and SIA Cargo – the cargo division was the only one to turn in a loss, amounting […]


cargo FTK results SIA Singapore Airlines


Singapore Airlines has posted a fiscal third-quarter net profit down 43 per cent amid significant fuel-hedging losses, shrinking demand for cargo and passenger travel. Of the parent airline’s four other business units – SATS Group, SIA Engineering, SilkAir and SIA Cargo – the cargo division was the only one to turn in a loss, amounting to S$46 million (US$30.4 million), compared with a profit of S$73 million for the same period a year earlier. SIA Cargo carried 14.2 per cent less freight (in load tonne-kilometres) than the corresponding period last year. With capacity decreasing at a slower rate (-7.5 per cent in capacity tonne-kilometres), cargo load factor fell 4.5 percentage points to 58.4 per cent. Cargo break even load factor increased 5.5 percentage points to 63.4 per cent, from higher unit cost (+3.4 per cent) and weaker yield (-5.7 per cent). Group net profit for the three months ended 31 December totaled S$337 million (US$225.6 million), down from S$590 million a year earlier, with the carrier saying, “demand for air transportation will remain weak for much of 2009”. Revenue declined 2.6 per cent to S$4.16 billion. Singapore Airlines said it booked an oil-hedging loss of S$341 million for the quarter.