SIA Group posts operating profit of $131 million
The SIA Group has posted an operating profit of $131 million for the third quarter of its 2012-13 financial year, a result that is $26 million (17%) lower than a year ago. The group’s revenues fell marginally by $15 million (0.4%), mainly on a poor cargo result. However, passenger revenues improved as promotional activities boosted traffic by 7.8%. Group expenditure rose by $11 million (0.3%) to $3,729 million, largely due to higher staff costs.
Group net profit for the third quarter was $143 million, 6% higher year-on-year. This was due to an increase in non-operating items from surplus on the sale of aircraft, spares and spare engines and higher net interest income.
“The outlook for international air travel demand continues to be challenging,” the group said in a statement. “Loads and yields of both passenger and cargo businesses are expected to remain under pressure, while the price of jet fuel continues to be at a historical high. The depreciation of revenue-generating currencies against the Singapore dollar poses yet another challenge.”
[pictured: SilkAir flight attendants; courtesy SilkAir]