Singapore Airlines sees net profits nosedive 69%

High fuel prices and an uncertain global economy weighed heavily on the Singapore Airlines Group earnings in the 2011-12 financial year, pushing net profit down by S$756 million (US$589.6 million) or 69 per cent to S$336 million. Group revenue grew by $333 million (up two per cent) to $14.9 billion on the back of a 3.6 per cent improvement in passenger carriage, but partially offset by weaker yields.


Singapore Airlines


High fuel prices and an uncertain global economy weighed heavily on the Singapore Airlines Group earnings in the 2011-12 financial year, pushing net profit down by S$756 million (US$589.6 million) or 69 per cent to S$336 million. Group revenue grew by $333 million (up two per cent) to $14.9 billion on the back of a 3.6 per cent improvement in passenger carriage, but partially offset
by weaker yields.

The carrier – the world’s No.2 carrier by market value – said jet fuel prices remained high throughout the year, resulting in a 32 per cent spike year-on-year in average jet fuel prices to US$133
per barrel. This translated to a 29 per cent (+S$1.3 billion) increase in fuel cost before hedging, which contributed to a 10 per cent rise in Group expenditure.

The Singapore-based Group reported its operating profit fell S$985 million (-77 per cent) to S$286 million. The operating results of the main companies in the Group for the financial year include: Parent Airline Company – Operating profit of $181 million ($851 million
profit in 2010-11); SIA Engineering – Operating profit of $130 million ($136 million profit in 2010-11); SilkAir – Operating profit of $105 million ($121 million profit in 2010-11) and SIA Cargo – Operating loss of $119 million ($151 million profit in 2010-11).