• SIA Group’s Net Profit Up 32%

    JAKARTA – Singapore Airlines (SIA) Group posted net profit of US $ 425 million in the first half of its financial year 2017-2018, up 32% from last year.

    These results came from group operating profits that increased by US $ 211 million and lower losses from associated companies by around U $ 46 million, as reported in a press release received by Business on Thursday (11/16/2017).

    This achievement ignores last year’s gain on SIA Engineering’s divestment of its 10.0% stake in Hong Kong Aero Engine Services Ltd (HAESL) and special dividends received from HAESL

    SIA’s revenue also increased by US $ 401 million in the same period last year to US $ 7,712 million, up 5.5% with the increase in revenue seen in all business segments.

    Passenger flown revenue contributed US $ 166 million, up 2.9% on improved travel flow.

    Cargo revenues increased by US $ 123 million, up 6.1% on freight carriers and cargo. Engineering services recorded an increase in revenues of US $ 52 million or an increase of 26.9%, largely contributed by maintenance and repair activities of aircraft components.

    On the other hand, group expenditures also increased by US $ 190 million to US $ 7,199 million, up 2.7%. Clean fuel costs increased by US $ 14 million, as a reduction in fuel loss of US $ 273 million to offset rising fuel costs before hedging. The increase was mainly due to higher average jet fuel prices.

    The residual fuel costs increased by US $ 176 million or approximately 3.4%, partly influenced by the expansion of operations by SilkAir and Scoot.

    In terms of airline companies, operating profit increased 48.9% or about US $ 135 million compared to the same period last year. Total revenue also increased by $ 161 million. The increase is due to the number of passengers being flown also increased.

    While the passenger stuffing rate increased by 2.8% in the same period last year to 80.9%, in line with the relatively stagnant capacity growth. Meanwhile, airline expenses increased by US $ 26 million in particular for employee costs as well as handling fees, landing fees, and higher parking fees.

    SilkAir, a subsidiary of SIA, reported an operating loss of US $ 23 million compared to the same period last year. This is due to operational expenses that rose 13% beyond the increase in revenues. Another subsidiary of Scoot also recorded an operating profit loss of US $ 12 million.

    SIA Cargo reversed its loss last year of US $ 45 million to reach an operating profit of US $ 32 million. Revenue increased by US $ 122 million as the number of freight carriers increased by 6.1%, which was further supported by a 6.7% increase in cargo yields.

    Expenditures increased by US $ 45 million, in part due to higher handling costs of increased freight rates, as well as higher maintenance and repair costs for aircraft. The cargo stuffing rate increased by 3.2 percentage points to 64.8%.

    While SIA Engineering recorded operating profit of $ 38 million, up US $ 15 million over the same period last year. This increase is due to revenue growth from aircraft repair activities.

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    Sources: http://industri.bisnis.com/read/20171116/98/709935/laba-bersih-sia-group-meningkat-32
    Translated by Aryaputra PandeBIC

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