SINGAPORE: Singapore Airlines (SIA) recorded a 35.5 percent jump in its net profit in the October to December 2015 quarter, the group said in a press release on Thursday.
The company has attributed the gain to healthy expansion at its two budget airlines – SilkAir and Scoot, as well as the slide in fuel prices providing cost relief to the group.
Group net profit for the three-month period was 275 million Singapore dollars (195 million U.S. dollars), 35.5 percent higher than in the same period last year.
The group also recorded an operating profit of 288 million Singapore dollars (204.3 million U.S. dollars), which registered a 95.9-percent surge from a year ago.
On top of an improved operating profit, there were higher gains from disposal of aircraft, primarily from SilkAir’s sale and leaseback of four 737-800s and SIA Cargo’s disposal of a parked 747-400 freighter.
However, group revenue came in at 3,941 million Singapore dollars (2,795 million U.S. dollars), which was driven down 3.9 percent by weaker yields from passenger and cargo operations, partially mitigated by higher carriage. Passenger yield declined 4.6 percent while cargo yield fell 13.5 percent.
Looking ahead, SIA says the challenging operating environment is expected to persist, with travel demand remaining volatile, affected by economic forces and external events. On the competitive front, expansion of other full-service airlines as well as low-cost carriers, particularly in Southeast Asia, will continue to exert pressure on loads and yields.
“The group will remain vigilant in adapting to market changes, drawing on the complementary strengths of the carriers in its portfolio and extensive partnerships with other airlines,” SIA said.
