SINGAPORE - Net profit at Singapore Airlines (SIA) for the three months to June 30 fell by 8.6 per cent to $235 million, but this was mainly due to the absence of a one-off gain from a subsidiary last year.
At the operating level, SIA reported a profit of $281 million in the April to June quarter, 45.6 per cent higher compared with the same period last year, the airline said on Thursday after trading hours.
Group revenue increased by 5.6 per cent year-on-year to $3.9 billion while spending
increased by 3.4 per cent to $3.6 billion. Net fuel costs rose 3.4 per cent, as a $115 million reduction in fuel hedging loss partially offset the $145 million increase in fuel cost before hedging, caused mainly by higher average jet fuel prices.
Excluding fuel, costs were up 3.4 per cent, partly attributable to the enlarged operations of SilkAir and Budget Aviation Holdings, the parent company of budget carriers Scoot and Tigerair.
The industry remains challenging, SIA said, as the uncertain global economic climate and geopolitical concerns, coupled with overcapacity in key markets, continue to dampen yield performance.
Fuel prices are expected to remain volatile in the months ahead, as the oil market continues to adjust to demand and supply conditions.
SIA will continue to take delivery of modern and fuel-efficient aircraft to further expand its network and enhance its competitiveness in both the full-service and low-cost market segments, the airline said.
The completion of the Scoot-Tigerair integration under the Scoot brand name will also give more expansion opportunities for the group's low-cost segment.
SIA's transformation programme is also ongoing. The aim is to identify new opportunities for revenue generation and to re-structure its cost base.
Earnings per share fell to 19.9 cents from 21.7 cents a year ago, while net asset value per share was $11.11, higher than $11.07 as at March 31.