SINGAPORE - National carrier Singapore Airlines (SIA) third-quarter net profit surged over 60 per cent on the back of stronger operating profit as well as the absence of a write-down of the Tigerair brand and trademark made last year.
Net profit jumped 61.5 per cent year-on-year to S$286.1 million, while revenue increased about 6 per cent to S$4.08 billion as all of its business segments - passenger, cargo and engineering services - posted higher revenues.
Earnings per share for the quarter under review climbed to 24.2 Singapore cents, up from 15 cents a year ago.
Expenditure edged up 5.4 per cent to S$3.75 billion, partly due to higher fuel costs. However, operating profit still rose from S$292.9 million a year ago to S$329.4 million, in line with the increase in revenue.
SIA said: "Despite a stabilisation in yields in recent months, pressure on yields remains as competitors mount significant capacity in key markets with aggressive pricing. These challenging market conditions have been exacerbated by recent fuel price movements."
It added: "Fuel prices have been trending higher and volatility is expected to persist in the months ahead."
For the fourth quarter of FY17/18, the group has hedged 40.7 per cent of its fuel requirements at a weighted average jet fuel price of US$65 per barrel.
Longer-dated Brent hedges - at prices ranging between US$53 and US$59 per barrel, with maturities extending to FY 2022/23 - cover up to 47 per cent of the group's projected annual fuel consumption.
SIA shares closed at S$10.62 on Tuesday, down one cent.