SINGAPORE: SIA rebounds from consecutive losses

The Singapore Airlines (SIA) Group returned to profit in the three months to the end of December following losses in the two preceding quarters. The group posted a 19.7 per cent rise in quarterly profit to S$403.7 million (US$286.4 million) in its third quarter compared to a net profit of $337.2 million a year ago […]


The Singapore Airlines (SIA) Group returned to profit in the three months to the end of December following losses in the two preceding quarters. The group posted a 19.7 per cent rise in quarterly profit to S$403.7 million (US$286.4 million) in its third quarter compared to a net profit of $337.2 million a year ago on a recovery in cargo volumes and improving passenger demand. Group revenue at $3.42 billion was up nearly 11 per cent over the second quarter. The net profit was a turnaround from losses of $307 million in the first quarter and $159 million in the second quarter.

All the main companies in the group were also profitable in the quarter with Singapore Airlines posting an operating profit of $231 million; SIA Cargo with an operating profit of $40 million, compared with loss of $46 million in the same period a year earlier; SilkAir with an operating profit of $23 million and SIA Engineering which posted an operating profit of $22 million.

Looking ahead SIA said passenger loadings in January and bookings in hand indicate that the recovery in the third quarter is likely to continue in the final quarter of the current financial year. The improvement in yields is also holding up, it added, but issued a caveat for the cargo side, saying: “Although air cargo shows similar improvement, it is more tentative because of the excess of freighter capacity and the unidirectional nature of cargo flows.