Weak fourth quarter hits SIA profits
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The Singapore Airlines (SIA) Group has announced its results for fiscal full-year 2008-09, with profits tumbling 48.2% from the previous year. SIA earned a net profit of just SG$1.06 billion (US$721 million) for year ending 31 March 2009, SG$988 million lower than the preceding year. Operating profit for the year was SG904 million, a decline of SG$1.22 billion (-57.5%) from last year, if which SG$496 million was registered in the last quarter. SIA Group posted an operating loss of SG$28 million in the fourth quarter, in contrast to the SG$468 million operating profit in the same period last year. The results reflect the severe deterioration in operating conditions in the fourth quarter.
SIA Group was severely hit by last year’s fluctuating oil prices. While lower fuel prices reduced expenditure on fuel by SG$666 million, this was offset by losses in hedging of SG$543 million. The hedging losses included SG$112 million losses resulting from the early termination of several fuel hedging contracts.
During the financial year, Singapore Airlines took delivery of three Airbus A380-800s, four Airbus A330-300s and five Boeing B777-300ERs, and decommissioned six Boeing B747-400s and one B777-200. As of 31 March 2009, the airline’s fleet comprised 103 passenger aircraft with an average age of just over six years.
Despite two new services, to Riyadh and Kuwait, SIA has largely shed routes, with Osaka, Los Angeles, Amritsar and Vancouver flights all having been suspended. From April 2009 to March 2010, capacity will be reduced by a further 11% and a total of 16 passenger aircraft will be decommissioned from the operating fleet.
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