SIA 2Q revenue and earnings up despite mixed performances across group
Benjamin Cher
5/11/2019, 7:21pm
SINGAPORE (Nov 5): Singapore Airlines saw earnings of $94.5 million for 2Q20 ended Sept 30, 70% higher compared to a year ago.
SIA says this was mainly mainly due to higher contributions from associates and joint ventures of $78 million only to be offset by higher finance charges of $28 million.
Revenue for 2Q20 rose 5.3% to $768.5 million from $700 million a year ago mainly driven by growth in passenger-flown revenue, although the topline was dragged down by cargo-flown revenue.
Operating performances were mixed across the group. Parent airline reported a 1.7% decrease in operating profit to $233 million from $237 million a year ago; SilkAir reported losses remained unchanged at $3 million a year ago; while Scoot reported losses widened to $39 million from $11 million.
The increase in SIA’s revenue was led by a growth in passenger loads, but this was offset by weaker cargo revenue and higher net fuel and other expenditure. SilkAir also saw higher revenues from traffic growth of 3.1% but was matched by an increase in expenditure partly contributed by the grounding of the Boeing 737 MAX 8 aircraft.
Scoot saw passenger revenue rising $15 million, driven by a 5% increase in passenger carriage on 4.7% capacity growth. However this was offset by 7% higher costs, which included fuel.
Meanwhile, SIA Engineering reported a $8 million improvement in operating profit to $19 million mainly due to higher revenue from airframe and line maintenance segment, lower subcontract costs and a favourable exchange variance.
Across the entire group, passenger revenue was up 7.5% to $244 million while cargo revenue dropped 16.3% to $93 million. Expenditure increased 4.7% to $180 million due to capacity injection which outpaced revenue growth of $160 million, or 3.9%.
More details in
https://www.theedgesingapore.com/capital...ross-group
The Company is declaring an interim dividend of 8 cents per share (tax exempt, one-tier), amounting to $95 million, for the half-year ended 30 September 2019.
The interim dividend will be paid on 27 November 2019 to shareholders as of 15 November 2019.
See also :
1.
https://links.sgx.com/FileOpen/sgxann-q2...eID=584449
2.
https://links.sgx.com/FileOpen/nr-q2fy19...eID=584450
3.
https://links.sgx.com/FileOpen/slide-q2f...eID=584451