Singapore Airlines' second quarter profit surges 135%

Profits at Singapore Airlines (SIA) for the three months to the end of September surged 135 per cent.
Profits at Singapore Airlines (SIA) for the three months to the end of September surged 135 per cent.PHOTO: BLOOMBERG

SINGAPORE - - Profits at Singapore Airlines (SIA) for the three months to the end of September surged 135 per cent year-on-year to $213.6 million.

This was due in part to an absence of share of loss from associated companies with the reclassification of budget carrier Tigerair as a subsidiary, the airline said on Thursday (Nov 5).

Group revenue for the second quarter fell to $3.8 billion, from $3.9 billion a year ago, while spending was flat at about $3.7 billion.

For the first six months of the current financial year, profits rose by 142 per cent to $304.8 million.

Looking ahead, SIA said the uncertainty in economic conditions persists, exacerbated by concerns about China's slowing economy, which have led to weakening emerging-market currencies and volatility in stock markets.

"The outlook for both passenger and cargo traffic is cautious" SIA said.

Yields remain under pressure in the face of capacity additions from other airlines.

Advance passenger bookings for the October-December quarter are positive, but mainly bolstered by promotional activities, the airline said.

Faced with these challenges, SIA said it will maintain strict cost discipline and leverage the various airlines within the group to remain flexible and nimble in tapping all key market segments.

SIA has declared an interim dividend of 10 cents per share amounting to $116 million, for the half-year ended Sept 30

Earnings per share was 18.3 cents for the second quarter, up from 7.7 cents a year earlier. Net asset value per share was $10.83, higher than the $10.66 as at March 31.