SIA performance slips in 2014

SIA's net profit dipped 1.5%
SIA’s net profit dipped 1.5%

Singapore Airlines Group experienced slight decline in its financial results for the nine months ending 31 December 2014.

The company generated a net profit of SG$328 million (US$242m) for the three-quarter period, 1.5% lower than the same period in 2013. Total revenue showed a small increase of 0.6%, to SG$11.69 billion, but operating profits fell 0.6% to SG$318m.

SIA said the nine-month result was mainly a result of the SG$129m loss from Tiger Airways in the first half of the financial year, and the weaker performance of SIA Engineering.

SIA and SilkAir carried a combined total of 16.95m passengers in the three quarters, up 1.2% year-on-year.

Looking forward, SIA said that it is unlikely to be helped by the drop in global oil prices, due to its previous fuel hedging commitments. “Falling oil prices may [also] be a manifestation of a slowdown in global economic activity, which may ultimately have a negative effect on air travel demand,” it added.

On a positive note, SIA said that advanced passenger bookings for the January-March quarter have increased, largely due to demand for travel during Chinese New Year.

“Competition remains intense however, and efforts to stimulate demand in weaker markets will keep yields under pressure,” it said.

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