SIA crashes into a net loss of $6.4m

Blame the one-off provision in relation to competition-related fines.

Singapore Airlines’ (SIA) 4QFY17 swung to a core net loss of at $6.4m, vs. core PATMI of $127.3m a year ago, as it recorded a one-off provision of $131.9m in relation to competition related fines.

According to OCBC Investment Research, the group's 4QFY17 revenue was flat YoY at $3.72b despite traffic growth (+5.5%), as yields remained under intense pressure.

Operating expenses grew 3.5% YoY to $3.69b due to higher average fuel prices as well as the double-digit capacity expansion by Budget Aviation Holdings (i.e. Tigerair and Scoot) and SilkAir. For FY17, revenue fell 2.4% to $14.9m with weaker performances at passenger airlines and cargo airline on the back of yield erosion, absence of income from aircraft delivery slot changes, but mitigated by a one-time credit upon change in timing of revenue recognition of utilized tickets.

Consequently, with a 2.1% reduction in operating expenses on cheaper fuel costs, FY17 core PATMI was below expectations as it declined 16.0% to $372.1m, forming 80.8% of our FY17 forecast.

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