Singapore Airlines reports SGD 449 in Q3 2019 operating profits

Singapore Airlines has announced SGD 449m (USD 323m) in third quarter operating profits, an increase of 15.7% over the same period in the previous year, the company said.

Group revenue increased year-on-year by 3% to SGD 4.47 billion during the quarter ending 31 December 2019. This was driven by an SGD 239 million — or 7% — increase in passenger revenue, which, Singapore Airlines says, was boosted by the group´s transformation programme that has increased sales and cut costs.

Traffic grew 8.3%, while capacity as measured in ASKs increased by 4.9%.

Cargo revenue, meanwhile, declined by SGD 112 million as freight yield fell 9.3% and load factor reduced by 4.6 percentage points to 61.4%. The airline cites trade uncertainties and a manufacturing slowdown in Europe and Asia as reasons for the decline.

Group expenditure increased SGD 68 million — or 1.7% — to SFS 4,022 million.

Silk Air´s SGD 7 million operating profit was flat compared with the same period the year before. The carrier´s capacity shrunk 8.2%. Scoot delivered an SGD4 million operating profit, an increase of SGD 3m, compared to the same period in 2019. The carrier´s total revenue increased SGD 15 million, while expenditure rose SG 12 million in line with capacity growth, Singapore Airlines says.

Operating profit at the group´s MRO arm SIA Engineering was stable at SGD 16 million. Revenue fell SGD 4 million due to a reduction in airframe and line maintenance revenue. But the company also reduced expenditure by SGD 4 million, primarily as a result of lower material costs.