SIA budget carriers generate $22m in operating profit

As unit cost declined 9.4%.

Singapore Airlines' SilkAir and budget carriers TigerAir and Scoot generated $27m and $22m in operating profit as unit cost declined 7.8% and 9.4%, respectively.

According to UOB Kayhian, their earnings stand in stark contrast to that of the parent airline, even as load factors were mostly flat for the period.

To recall, SIA surprised with a loss of $138m vs analysts’ expectation of an $8m profit as the parent airline swung to a loss. Whilst SIA managed to boost load factor, this was achieved at the expense of yields, which fell by a whopping 7.5% yoy in February.

Meanwhile, SIA Cargo’s losses narrowed as pace of yield decline fell to the lowest level in 8 quarters. Airline associates losses widened by 8% yoy in 4Q17 to $26m.