SIA's net profit up 162% to $91 million

Total expenditure dipped by less than 1 per cent to $3.6 billion, SIA said.
Total expenditure dipped by less than 1 per cent to $3.6 billion, SIA said.ST PHOTO: MUGILAN RAJASEGERAN

SINGAPORE - Net profit at Singapore Airlines (SIA) for the three months ended June 30 surged by 162 per cent year-on-year to $91 million.

This was due in part to a reduction in share of losses of associated companies including budget carrier, Tigerair.

Group turnover for the first quarter ended June 30 grew slightly by 1.4 per cent to $3.7 billion.

Total expenditure dipped by less than 1 per cent to $3.6 billion, SIA said on Wednesday.

At the operating level, SIA and its regional arm SilkAir both did better while SIA Engineering stayed flat.

SIA Cargo and the group's long-haul budget arm, Scoot, both recorded operating losses but the bleeding was less than a year ago.

Looking ahead, SIA said that advance passenger bookings for the July-September quarter are higher year-on-year, mainly supported by fare discounts.

There is, however, weaker demand for Americas and Europe regions, reflecting the competitive environment.

Yields are expected to remain under pressure, the airline said.

Investment in product upgrades, including the launch of a premium economy class in August, will continue during the year.

Earnings per share jumped to 7.8 cents from 3 cents a year ago, while net asset value per share was $10.93, higher than $10.66 as at March 31. The shares