Singapore Airlines Group attributes reduced operating profit in H1FY2019 to higher fuel costs

13 November, 2018

Singapore Airlines Group reported (13-Nov-2018) operating profit decreased 44.1% year-on-year to SGD426 million (USD309.1 million) in H1FY2018/19 due to a 20.4% increase in fuel costs. Key 3Q23018 highlights include:

  • Passenger revenue increased 5.8% due to an 8.8% increase in traffic, which outpaced growth in capacity of 5.4%, driving load factor up 2.6ppts to 83.6%.
  • RASK increased 1.3%, which the carrier attributed to the positive results of transformation efforts.
  • Cargo revenue increased 7.4% with a 9.7% increase in yields, partially offset by a 2.3% decrease in loads carried.
  • Revenue from engineering services decreased 7.9% due to reduced airframe and fleet management activities.
  • Group expenditure increased 7.6%, predominantly led by higher fuel costs. The average jet fuel price increased 39.5%, partially alleviated by hedging gains compared to losses in 2017. Non fuel costs increased 3%, which the carrier said was "well within the growth in capacity largely contributed by passenger airlines, due to the success of continuing efforts to improve cost efficiency".
  • Losses related to associated companies increased, mainly due to the results of Virgin Australia, which were impacted by "major accounting adjustments". [more - original PR]