SIA's profit falls 20.7% to $111m in first quarter

SIA's operating profit rose 3.6 per cent to $200 million, while expenditure jumped 7 per cent to $3.9 billion.
SIA's operating profit rose 3.6 per cent to $200 million, while expenditure jumped 7 per cent to $3.9 billion. PHOTO: ST FILE

Earnings plunged at Singapore Airlines (SIA) in its first quarter, due in part to a higher share of losses from associated companies and an uptick in expenditure.

Net profit came in at $111 million for the three months to June 30, down 20.7 per cent on the same period a year earlier.

Revenue increased 6.7 per cent to $4.1 billion.

Operating profit rose 3.6 per cent to $200 million, while expenditure jumped 7 per cent to $3.9 billion. Earnings per share stood at 9.4 cents against 11.8 cents a year earlier.

No dividend was recommended, the same as last year.

Its passenger load factor rose 1.2 percentage points to 83.2 per cent, a record for the first quarter.

SilkAir recorded an operating loss of $16 million against a slim profit of $200,000 a year earlier as it was significantly impacted by the grounding of its six 737 Max 8 aircraft.

The capacity reduction, coupled with a 2.9 per cent yield contraction, contributed to a $10 million decline in revenue while expenditure rose 2.5 per cent, primarily due to costs related to the Max 8 grounding.

Low-cost carrier Scoot also put in a much weaker showing with an operating loss of $37 million from a $1 million operating profit a year earlier on higher expenditure.

SIA Engineering's operating profit rose 80 per cent to $18 million, led by lower expenditure.

A version of this article appeared in the print edition of The Straits Times on August 01, 2019, with the headline 'SIA's profit falls 20.7% to $111m in first quarter'. Print Edition | Subscribe