SilkAir, SIA Cargo made big-time losses.
According to a release, the SIA Group registered a net profit of $168 million in the first half of the 2012-13 financial year, a decline of $71 million (-30%) over the same period last year.
This was mainly attributable to lower non-operating items as the Parent Airline Company last year benefited from a higher surplus on the disposal of aircraft and spare
Group operating profit increased $8 million (+6%) year-on-year to $142 million. This was contributed by the improvement from the first quarter (+$61 million), albeit off a low base following the Japanese earthquake in the corresponding quarter last year.
However, the $61 million increase was partially offset by a weaker second quarter (-$53 million), with the widening of losses from SIA Cargo as the air freight market remained soft.
Group revenue grew $294 million (+4%) to $7,571 million, on the back of 8.0% growth in passenger carriage, partially set off by a 3.4% decline in yields. Group expenditure rose by $286 million (+4%) to $7,429 million, principally on account of higher fuel cost (+$112 million, or +4%), arising from higher fuel volume uplift as capacity grew 5.1%. Other variable costs also increased in line with the capacity growth.
The operating results of the main companies in the Group for the first half of the financial year are as follows:
- Parent Airline Company: Operating profit of $169 million ($53 million profit in 2011)
- SIA Engineering: Operating profit of $66 million ($69 million profit in 2011)
- SilkAir: Operating profit of $37 million ($34 million profit in 2011)
- SIA Cargo: Operating loss of $99 million ($31 million loss in 2011)
The Group net profit attributable to equity holders for the July-September quarter was $90 million (54% lower than the same period in the previous year).
Group expenditure was up 4% (+$147 million) on the back of higher fuel volume uplifted. Revenue growth, however, lagged at a rate of 3% (+$94 million) as
both passenger and cargo yields fell.
Consequently, Group operating profit fell $53 million (-43%) to $70 million.
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