The Singapore Airlines (SIA) Group reported an operating profit of $281 million in the April-June 2017 quarter at S$88 million. This is 45.6 percent higher compared with the same period last year.
SIA’s group revenue also rose S$206 million year-on-year to $3,864 million, a 5.6 percent increase. Excluding one-off items in both financial years, Group revenue increased year-on-year by $184 million (+5.2 percent). Group operating profit rose by S$66 million from S$42 million to S$108 million.
Group net profit for the quarter was $235 million, down $22 million from last year, marking a 8.6 percent decrease.
In a press release, SIA stated that business outlook for the airline industry remains challenging. Uncertain global economic climate and geopolitical concerns, coupled with over-capacity in our key markets, continue to dampen yield performance.
Fuel prices are expected to remain volatile in the months ahead, as the global oil market continues to adjust to demand and supply conditions.
The Group will continue to take delivery of modern and fuel-efficient aircraft to further expand its network and enhance its competitiveness in both the full-service and low-cost market segments.
With the completion of the Scoot-Tigerair integration under the Scoot brand name on 25 July 2017, there would also be more expansion opportunities for the budget segment of the SIA portfolio. The strong Southeast Asia presence of the two merged airlines will help to generate connecting traffic with long-haul flights.
SIA’s transformation programme is also ongoing, to identify new opportunities for revenue generation, and to re-structure its cost base.