SIA doubles Q3 operating profit to S$288 million on sterling contribution from parent

Singapore Airlines reported an operating profit of $288 million for the October-December quarter.
Singapore Airlines reported an operating profit of $288 million for the October-December quarter. PHOTO: ST FILE

SINGAPORE - Operating profits at Singapore Airlines (SIA) for the October-December quarter doubled to $288 million, on the back of sterling performance by the parent carrier as well as subsidiaries SilkAir and Scoot.

Net profit for the quarter jumped 35.5 per cent year-on-year to $275 million.

Group revenue though was down about 4 per cent to $3.9 billion, mainly due to weaker yields from passenger and cargo operations.

Total spending fell by 7.6 per cent to $3.7 billion with the reduction in fuel prices.

On top of an improved operating profit, there were also higher gains from disposal of aircraft by SilkAir and SIA Cargo.

Group net profit for the nine months from April to December was $252 million higher, at $580 million.

Despite the good set of numbers, the challenging operating environment is expected to persist, SIA said.

Demand for travel is expected to remain volatile due to economic forces and external events.

On the competitive front, expansion of other full-service airlines as well as low-cost carriers, particularly in South-east Asia, will also continue to exert pressure on loads and yields.

Supported by promotional activities, advance passenger bookings for the January to March quarter are positively tracking seat capacity.

As for air cargo, the outlook is cautious amid the prevailing industry overcapacity and tepid demand growth, SIA said.

The group will remain vigilant in adapting to market changes, drawing on the complementary strengths of the carriers in its portfolio and extensive partnerships with other airlines, it said.

"With a strong balance sheet and its many strategic initiatives, the group is well positioned to confront the challenges ahead" SIA said in its statement.