SIA full year ops profit grows despite weak cargo

The Group earned an operating profit of $259 million in the 2013-14 financial year, an increase of $30 million (+13.1 per cent) over last year.

SIA Cargo

SIA Group revenue increased $146 million (+1.0 per cent) to $15,244 million, mainly due to higher passenger revenue (+$275 million) including recognition of a settlement pertaining to changes in aircraft delivery slots, partially offset by a decline in cargo revenue.

SIA Cargo’s operating loss narrowed by $67 million, on the back of ongoing efforts to better match capacity with demand.

SIA Cargo’s load factor of 62.5 per cent was 0.9 percentage point lower, as a 5.1 per cent reduction in freight carriage (in load tonne-kilometres) outpaced a 3.6 per cent reduction in cargo capacity (in capacity tonne-kilometres).

In May 2014, SIA Cargo will return one Boeing 747-400 freighter onexpiry of its lease and will be operating a fleet of eight freighters in FY2014-15.

The outlook is that cargo yield is expected to remain weak as the air cargo industry continues to face challenges from overcapacity.