SIA full-year profits rise after Tigerair separation

Guest Contributor

Contributors are not employed, compensated or governed by TD, opinions and statements are from the contributor directly

Photo by Jordan Tan
Photo by Jordan Tan

Singapore Airlines Group experienced a rise in profits for the 2014-15 financial year, after it was boosted by the separation of Tigerair.

The low-cost unit has proved quite expensive for SIA in the past, reducing the group’s profits by SG$126m (US$95m) in 2013-14. But Tigerair’s separation into its own business unit, along with lower fuel costs, boosted SIA’s operating profit by 58% to SG$410m (US$310m) for the 12 months ending 31 March 2015.

And even excluding the impact of Tigerair from the results, SIA’s full-year group operating profit still increased 17%.

Revenue dropped marginally (-0.2%) to SG$15.21 billion, although passenger revenue increased 0.9%. But the group managed to cut its expense bill by 1.3% to SG$14.97bn, including a SG$263m reduction of its fuel costs. This could have been greater, but unfortunately SIA hedged 66% of its jet fuel supply at an average price of US$117 per barrel, before prices tumbled.

By unit, national carrier Singapore Airlines generated operating profits of SG$340m in 2014-15, while SilkAir generated SG$41m. The group was hit by a SG$22m loss suffered by its cargo unit.

During the financial year, the group took delivery of seven new aircraft, including two Boeing 777-300ERs and two Airbus A330-300s for SIA, two B787-9s for Scoot and one B737-800 for SilkAir.

You might also like

Comments are closed.

Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time