Singapore Airlines Q2 bottom line soars on stronger operating results

Singapore Airlines' revenue rose 5.3 per cent year on year to S$3.85 billion while earnings per share clocked 16.1 Singapore cents, rising from 5.5 cents a year ago.
Singapore Airlines' revenue rose 5.3 per cent year on year to S$3.85 billion while earnings per share clocked 16.1 Singapore cents, rising from 5.5 cents a year ago.PHOTO: REUTERS

SINGAPORE - SINGAPORE Airlines' (SIA) Q2 net profit nearly tripled to S$189.9 million, up from S$64.9 million a year ago, bolstered by higher revenue.

Revenue rose 5.3 per cent year on year to S$3.85 billion while earnings per share clocked 16.1 Singapore cents, rising from 5.5 cents a year ago.

For the quarter under review, operating profit more than doubled from S$109.1 million to S$232.6 million thanks to a rebound in revenue, which outstripped the increase in expenditure.

For the six months ended Sept 30, net profit surged about 32 per cent year on year to S$425 million on the back of higher operating profit and lower share of losses from associated companies.

Revenue edged up 5.5 per cent to S$7.71 billion with improvements across all business segments.

"Headwinds remain as competitors mount significant capacity in key markets," SIA warned.

"Yields continue to be under pressure, despite some stabilisation in recent months."

For the parent airline, yield dipped 2 per cent to 10 cents per passenger-km.

The company declared an interim dividend of 10 cents per share, up from nine cents a share a year ago.

The dividend will be paid on Dec 5.

Shares in SIA closed at S$10.32 on Tuesday, down seven cents.