SINGAPORE - Profits at Singapore Airlines (SIA) jumped 119 per cent to $804 million in the year to March 31, on the back of lower fuel prices and an exceptional gain.
SIA pocketed an undisclosed amount when it agreed earlier in the financial year to release to Airbus seven delivery slots for the A-350-900 aircraft.
Group revenue came in at $15.2 billion, down 2.2 per cent from a year ago, mainly due to lower passenger revenue from the parent premium airline and lower cargo revenue.
Total spending fell 4 per cent to $14.5 billion, primarily due to a 41.3 per cent drop in average jet fuel price.
Group net profit for the final January-March quarter was $224 million, an improvement of $184 million against the same period last year.
Looking ahead, SIA said in a statement on Thursday that the group is contending with a challenging operating environment in key markets, caused in part by weak economic activity and relatively rapid growth in capacity.
This has impacted fares and yields.
SIA remains fully committed to its multi-pronged approach to address the structural changes that have been taking place in the industry, through its portfolio of airlines serving both full-service and budget airline segments of the market, its multi-hub strategy, the pursuit of adjacent business opportunities, and ongoing enhancement of premium products and services, the airline said.
The board has recommended a final dividend of 35 cents per share for the financial year.
Including the interim dividend of 10 cents per share paid in November, the total dividend for the 2015-16 financial year will be 45 cents per share.