The Singapore Airlines Group has reported a net profit
attributable to equity holders of $337 million for the third quarter
(October – December 2008) of financial year 2008-09, a drop of 42.8% or
$253 million from the same period a year ago.
Group revenue declined 2.6% to $4,164 million on
weaker passenger and cargo carriage, while Group expenditure rose
5.7% to $3,807 million.
The price of jet fuel corrected from its peak of
US$171/BBL recorded in July 2008, averaging US$99/BBL in the third
quarter. While lower fuel prices reduced expenditure on fuel by
$125 million, losses in hedging amounted to $341 million.
fuel, Group expenditure was $125 million (-5.5%) lower compared to
the same period last year. Foreign exchange rate movements lowered
operating profit by $144 million, as major revenue generating
currencies, particularly the Australian Dollar, the UK Pound and
the Euro, weakened against the Singapore Dollar, even as the
Japanese Yen and the US Dollar strengthened.
Group operating profit was $357 million for the
third quarter, $318 million (-47.1%) lower than the year
before. Operating profit for the Parent Airline Company at $314
million was $199 million (-38.7%) lower year-on-year.
operating results of the group's major subsidiary companies are:
• SATS Group Profit of $ 43 million (-7.7%)
Engineering Profit of $ 29 million (+53.9%)
• SilkAir Profit of
$ 12 million (-17.2%)
• SIA Cargo Loss of $ 46 million (profit
of $73 million previously)
April – December 2008
nine months to December 2008, the Group posted a net profit
attributable to equity holders of $1,020 million, compared to
$1,522 million for the corresponding period last year, a
decline of $502 million (-33%).
Group revenue grew $810
million (+6.8%) to $12,675 million while expenditure was up by
a higher amount to $11,743 million (+$1,535 million or +15%)
principally on account of higher expenditure on fuel. The average jet fuel price for the April to December 2008 period increased
44.8% from US$94/BBL to US137/BBL, resulting in fuel
expenditure to be higher by $1,462 million.
operating profit for the Group fell $725 million (-43.8%)
A total of
4.8 million passengers flew on Singapore Airlines in the third
quarter; 4.2% lower than last year. Passenger carriage (in revenue
passenger kilometres) was 1.2% lower while capacity (in
available seat-kilometres) grew 2.3%.
load factor declined 2.8 percentage points to 78.5%.
breakeven load factor increased 5 percentage points to 72.7%,
as yield grew at a slower pace (+3.2%) than unit cost (+10.7%).
SIA Cargo carried 14.2% less freight (in load tonne-kilometres)
than the corresponding period last year. With capacity
decreasing at a slower rate (-7.5% in capacity
tonne-kilometres), cargo load factor fell 4.5 percentage points to
58.4%. Cargo breakeven load factor increased 5.5 percentage
points to 63.4%, from higher unit cost (+3.4%) and weaker yield
There was no change
to the Parent Airline Company’s fleet of 101 aircraft during
the quarter. As at 31 December 2008, the operating fleet comprised
14 B747-400s, 76 B777s, five A340-500s and six A380-800s, with an average age of six years and five months.
weekly service to Riyadh via Dubai was launched on 14 December
2008 and flights to Kuwait via Abu Dhabi will commence from 15
March 2009. More flights to Dubai, Abu Dhabi, Cairo and
Istanbul were added.
On the other hand, flights to Manchester,
Athens, Osaka, Seoul, Chennai, Bangalore, Penang and Ho Chi
Minh City were scaled back during the quarter. From February
2009, services to Amritsar have been suspended.
Demand for air transportation is expected to remain weak for much
of 2009. The fuel hedging gains for the first nine months of
financial year 2008-09 was $191 million. For January to March
2009, 44% of fuel requirements for the Group, or approximately
3.7 million barrels, have been hedged at average jet fuel price
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