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13-May-2016 10:41 AM

Singapore Airlines Group operating profit up on lower fuel costs in FY2016

Singapore Airlines Group attributed (12-May-2016) improved operating profit in FY2015/16 to lower net fuel costs, partly offset by reduced passenger and other revenue and higher staff and aircraft maintenance costs. Passenger yields decreased 5.4% year-on-year to a five-year low. The company attributed a 2.2% decrease in group revenue mainly to lower passenger revenue at Singapore Airlines and lower cargo revenue, compensated in part by higher revenue from subsidiary airlines and income from the release of seven A350-900 delivery slots. Group expenditure decreased 4%. A 41.3% drop in the average fuel price was partially offset by increased hedging losses, strengthening of the US dollar and higher fuel volume uplifted. The Group hedged 53.8% of its fuel requirement at USD100 per barrel. Non-fuel costs increased 4.6%, mainly due to capacity growth by SilkAir and Scoot and the consolidation of Tigerair for the full financial year. The company also reported higher tax expenses and weaker results from JV companies. [more - original PR]

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