Published on : Thursday, February 7, 2013
The SIA Group recorded an operating profit of $131 million in the third quarter of the 2012-13 financial year, $26 million (-17%) lower than a year ago.
Group revenue fell marginally by $15 million (-0.4%), mainly from lower cargo revenue due to depressed yields (-3.5%) and poorer loads (-10.0%). On the other hand, passenger revenue improved as promotional activities boosted Group passenger carriage by 7.8%, partially offset by lower yields (-5.7%). Group expenditure rose by $11 million (+0.3%) to $3,729 million, largely owing to higher staff and variable costs, partly mitigated by a higher fuel hedging gain.
Group net profit for the third quarter was $143 million, $8 million (+6%) higher year-on-year despite recording lower operating profit. This is due to an increase in non-operating items from surplus on the sale of aircraft, spares and spare engines, and higher net interest income, partially offset by a $20 million provision by SIA Cargo
in relation to air cargo civil penalty proceedings in respect of competition law matters in Australia and New Zealand .
The operating results of the main companies in the Group for the third quarter of the financial year are as follows:
Parent Airline Company Operating profit of $87 million ($137 million profit in 2011)
SIA Engineering Operating profit of $31 million ($28 million profit in 2011)
SilkAir Operating profit of $34 million ($32 million profit in 2011)
SIA Cargo Operating loss of $29 million ($40 million loss in 2011)
For the nine months to December 2012, Group operating profit fell $18 million (-6%) to $273 million.
Group revenue improved $279 million (+3%) to $11,431 million, driven by stronger passenger carriage (+8.4%), partly offset by weaker yields (-4.2%). Group expenditure increased more, by $297 million (+3%) to $11,158 million, principally on account of higher fuel, staff and variable costs.
The Group posted a net profit of $311 million for the April-December 2012 period, a decline of $63 million (-17%) from the corresponding period in the previous year. Apart from the weaker operating performance, the decrease in net profit was due to lower surplus on sale of aircraft, spares and spare engines, an absence of a return of capital from the redemption of preference shares by an associated company and the provision by SIA Cargo for air cargo civil penalty proceedings, partially offset by higher net interest income.