SQ falls flat

SQ falls flat
By admin


Singapore Airlines has reported flat operating results in the first half of the 2014-15 financial year, with passenger yields remaining under pressure and net profit severely affected by associates’ losses.

The group recorded an operating profit of $171 million in the first half of the financial year, which marks an improvement of 1.2% over the same period last year, however group revenue was down by $154 million, largely due to lower incidental revenue stemming from reduced compensation pertaining to changes in aircraft delivery slots, and lower income from the lease of aircraft.

Passenger revenue was also lower year-on-year, but there was nevertheless a 1.4% increase in traffic as a result of yield declines amid the competitive operating environment.

Cargo revenue also fell by 1.6%, driven by capacity cuts of almost 4%, though this was partially compensated for by better yields and higher load factors.

Group expenditure was down $156 million compared to the previous financial year, with fuel costs after hedging dropping by $154 million, caused primarily by lower volume uplifted, a weaker US dollar against the Singapore dollar, and a 0.4% decline in jet fuel prices after hedging.

The share of results of associated companies fell $154 million, largely attributable to the Group’s share of Tiger Airways’ loss of $129 million, which included material charges relating to the sublease of surplus aircraft and sale of Tigerair Australia.

The commencement of equity accounting for Virgin Australia from the second quarter further also contributed to the weaker results, recording a drop of $16 million.

SilkAir's operating profit declined $17 million (-77.3%), as weaker yields put a drag on revenue and capacity injection pushed operating expenditure up.

Demand is generally flat, and yields will remain under pressure amid intense competition from other airlines and promotional activities in weaker markets.

While there has been a reprieve from cost pressures arising from the decline in fuel prices in recent months, there is concern that the decline reflects a slow-down in major economies in the world, which could ultimately hurt travel demand.

The Group has stated it will continue to track movements closely and make appropriate adjustments to capacity, ensuring it is positioned to meet future challenges. 

Latest News

  • Destinations
  • News

APT Launches 2025 Asia Adventures

APT has launched its Asia Adventures for 2025, including new luxury holidays in India, Sri Lanka and Japan. Five new tours lead guests to the highlights of India, including a seven-night cruise along the rarely travelled Lower Ganges aboard the Ganges Voyager. Further south, Sri Lanka’s greatest destinations are revealed on a new 15-day Land […]

  • Cruise
  • Luxury
  • News

Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit

Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]

  • Luxury

Malolo Island Resort opens brand new Spa

Fiji’s Malolo Island has added another string to its bow – opening its $1.3 million day spa on Thursday, 18th April 2024. (Lead Image: matriarch Rosie Whitton with spa staff) Located at the edge of the resort’s luscious patch of tropical rainforest, the new “Leilani’s Spa” adds another level of elevated experiences to Malolo’s already […]