SIA Group 1QFY2017 profit nearly triples but warns of challenges ahead

SIA Group revenue down 2% - financial highlights for three months ended 30-Jun-2016:

• Total revenue: SGD3654 million (USD2690 million), -2% year-on-year;
• Total costs: SGD3461 million (USD2548 million), -4%;
• • Fuel: SGD895.3 million (USD659.1 million), -28.5%;
  • Labour: SGD661.4 million (USD486.9 million), +12.3%;
• Operating profit (loss): SGD193.2 million (USD142.2 million), +73%;
• • Singapore Airlines: SGD197 million (USD145.0 million), +82%;
  • SIA Engineering: (SGD2 million) (USD1.5 million), compared to a profit of SGD21 million (USD15.6 million) in p-c-p;
  • SilkAir: SGD27 million (USD19.9 million), +440%;
  • SIA Cargo: (SGD34 million) (USD25.0 million), compared to a loss of SGD9 million (USD6.7 million) in p-c-p;
  • Scoot: SGD1 million (USD0.7 million), compared to a loss of SGD20 million (USD14.9 million) in p-c-p;
  • Tiger Airways: SGD8 million (USD5.9 million), compared to breakeven in p-c-p;
• Net profit: SGD256.6 million (USD188.9 million), +181%;
• Passenger numbers: 7.6 million, +5%;
• • SIA: 4.6 million, +1%;
  • SilkAir: 994,000, +8%;
  • Scoot: 738,000, +53%;
  • Tiger Airways: 1.3 million, -1%;
• Passenger load factor: 76.6%, -0.2 ppt;
• • SIA: 75.8%, -0.5 ppt;
  • SilkAir: 70.1%, stable;
  • Scoot: 82.3%, +0.9 ppt;
  • Tiger Airways: 83.4%, -0.1 ppt;
• Cargo volume: 306,900 tonnes, +9%;
• Cargo load factor: 62.0%, +0.9 pt;
• Passenger yield:
• • SIA: SGD 10.3 cents (USD 7.6 cents), -4%;
  • SilkAir: SGD 12.3 cents (USD 9.1 cents), -8%;
  • Scoot: SGD5.0 cents (USD 3.7 cents), -4%;
  • Tiger Airways: SGD 6.7 cents (USD 4.9 cents), stable;
• Cargo yield: SGD 25.2 cents (USD 18.6 cents), -17%;
• Total assets: SGD24,283 million (USD17,877 million);
• Total debt: SGD1196 million (USD880 million). [more - original PR]

*Based on the average conversion rate at SGD1 = USD0.736175 for Jun-2016 quarter
*Based on the average conversion rate at SGD1 = USD0.744714 for Jun-2015 quarter

SIA Group: "The business outlook for the Parent Airline Company remains challenging amid economic weakness and geopolitical concerns in some markets. Competition remains intense with aggressive capacity injection, and yields will continue to remain under pressure. Yields will be further diluted if key revenue-generating currencies depreciate against the Singapore dollar." Source: Company statement, 28-Jul-2016.