Mayday, mayday: SIA half-year profit down 62%

Guess what caused the airline’s profit to fall by $394m.

In an announcement Singapore Airlines said, “The Group made a net profit of $239 million in the first half of the 2011-12 financial year. This was $394 million (-62%) lower than the same period a year ago, principally on account of high fuel costs.”

According to SIA, expenditure on fuel increased $747 million as jet fuel prices spiked 45% over the same period last year. This, however, was partially offset by a $118 million year-on-year improvement in fuel hedging.

SIA further reported:

All the main companies in the Group recorded weaker operating results for the first half of the financial year. The operating profit of the Parent Airline Company fell $327 million (-86%), owing to higher fuel expenditure which increased $643 million (+37%) to $2,384 million. With stringent cost discipline, passenger unit cost excluding fuel declined 7%.

The operating results of the main companies in the Group for the first half of the financial year are as follows:
• Parent Airline Company Operating profit of $53 million ($380 million profit in 2010)
• SIA Engineering Operating profit of $69 million ($71 million profit in 2010)
• SilkAir Operating profit of $34 million ($36 million profit in 2010)
• SIA Cargo Operating loss of $31 million ($102 million profit in 2010)

Also Read

Singapore Airlines Group sees 7.9% rise in September passenger volume

CAAS and WAI-SG partner to promote aviation careers for young women

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit