Home' Asian Aviation : AAV Feb 2012 Contents 36 AsianAviation | FEBRUARY 2012
SIA carried 8.5 million passengers in the first half of the
business year -- a 3.3 percent increase year-on-year.
Singapore Airlines (SIA), traditionally
one of Asia s most pro table airlines,
saw net income plunge 62 percent in the
rst half of the 2011-2012 nancial year,
ended 30 September as spiralling fuel
prices took their toll. e SIA Group,
which also includes regional carrier Silk Air, SIA
Engineering (SIAEC) and SIA Cargo, made a net
pro t of S$239 million (US$187 million) in the rst
half. e reduction of S$394 million from the same
period a year earlier came "principally on account of
high fuel costs", the airline said.
Operating pro t declined to S$134 million, 78
percent lower than in the rst six months of the
previous nancial year. Group revenue grew S$180
million, or 3 percent, to S$7.28 billion, supported by
increased passenger numbers and at yields, despite
tougher competition and weak business sentiment.
Group spending rose 10 percent, or S$642 million,
to S$7.14 billion, as fuel costs increased by 35 percent,
or S$747 million as jet fuel prices surged 45 percent
compared with the same period of 2010. is increase
was partially o set by a S$118 million year-on-year
improvement in fuel-hedging bene ts.
All the main companies in the group recorded weaker
operating results for the rst half of the nancial
year. e parent airline s operating pro t airline fell
86 percent to S$53 million because of the surge in
fuel costs, which increased by S$643 million, or 37
percent, to S$2.38 billion. anks to strict spending
controls, however, passenger unit costs -- excluding
fuel -- declined 7 percent.
For the second quarter alone, group net pro t
dropped 49 percent from the year-earlier period
to S$194 million. At the same time, group sales
increased 2 percent to S$3.7 million, outpaced by
group spending, which increased 9 percent to S$3.58
billion because of fuel prices.
As a result, group operating pro t for the three-
month period plunged 64 percent to S$123 million.
SIA alone carried 8.5 million passengers in the
rst half of the business year -- a 3.3 percent increase
compared with the year-earlier period. Traffic in
revenue passenger-kilometres increased 3.8 percent,
outpaced by a 6.3 percent increase in capacity,
measured in available seat-kilometres. As a result,
the average passenger load factor declined by 1.9
percentage points, as the airline lled 77.5 percent of
its available seats.
Regional unit SilkAir experienced growth of 9.4
percent in both tra c and capacity, leaving passenger
load factor unchanged at 74.2 percent. But with unit
costs rising 8.4 percent and yields lagging behind with
5.2 percent growth, the overall break-even load factor
was 1.8 percentage points higher than in the same
period a year earlier.
Freight traffic, measured in freight tonne-
kilometres, for SIA Cargo increased 2 percent,
marginally faster than the 1.9 percent increase in
capacity, measured in available tonne-kilometres. is
led to a slight, 0.1 percentage point improvement in
cargo load factor, although a 3.6 percent increase in
unit costs and a 6.7 percent decline in yields caused
the break-even load factor to rise 6.6 percentage
points to 66.7 percent.
Over the six-month reporting period, SIA took
delivery of three Airbus A380-800 'Superjumbos ,
retired four Boeing 747-400 jetliners -- selling three
and preparing the fourth for sale -- and returning one
777-300 widebody twinjet as its lease expired. As of 30
September, the airline s eet comprised 106 passenger
aircra : three 747-400s, 65 777s, 19 A330-300s, 14
A380s and ve ultra-long range A340-500s. e eet
had an average age of six years and four months.
Just two weeks a er SIA announced its rst-half
results on 3 November, the carrier revealed it had
rmed up an order with Boeing for eight more 777-
300ERs for use on medium and long-haul routes.
The initial letter of intent was announced in
August, followed by November s firm purchase
agreement, enabling deliveries to begin in the 2013-
2014 nancial year. e order is valued at US$2.4
billion at current list prices. e aircra , con gured
in a three-class layout, will join 19 B777-300ERs
already in service with the Singapore carrier.
Fuel hurts Singapore
Singapore Airlines' profitability has been hurt by a surge in fuel prices, although the carrier continues
to expand and modernise its fleet, while planning a new low-cost subsidiary, writes Andrzej Jeziorski.
"Capacity continues to be
adjusted to match demand
across the group."
-- Singapore Airlines
Singapore in Focus
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