Singapore Airlines Group reported a significant drop in its half-year profit – from the previous year’s record high – as it flags a “moderation” in passenger yields from “strong” competition. 

Passenger traffic growth at the group also fell short of the capacity added, resulting in a dip in passenger load factors. 

Scoot Singapore Airlines -c- Oleg Elkov Shutterstock

For the six months ended 30 September, the group – comprising network carrier SIA and low-cost unit Scoot – recorded an operating profit of S$796 million ($602 million). That is down nearly 49% year on year. Net profit was similarly down to S$742 million in the first half.

Group revenue rose 3.7% to S$9.5 billion, with passenger and cargo turnover both increasing. However, SIA says “increased competition and higher passenger capacity in key markets” impacted passenger yields, which fell 5.6%. Cargo yields also dropped 13.4% as bellyhold capacity recovered. 

The group’s two airlines lifted passenger numbers almost 11% to 19.2 million during the first half. However, traffic growth of 7.9% failed to keep pace with the group’s 11% increase in capacity. 

SIA Group reported a 14% rise in costs, driven mainly by its net fuel costs rising almost a fifth. 

It adds: “Despite the impact of general price inflation, the group kept the rise in non-fuel costs to be largely in line with the 10.6% growth in overall capacity, thanks to its operational efficiency initiatives.” 

It expects travel demand to continue to be “robust” for the second half of the financial year, which ends 31 March 2025. However, it warns that its operating environment will continue to be competitive. 

SIA had previously flagged a weakening of yields – despite a healthy demand outlook – as other airlines in Asia-Pacific ramp up capacity. 

“As the aviation industry grapples with geo-political tensions, macroeconomic uncertainty, increased competition, and inflationary cost pressures, the group remains well-positioned to navigate these from a position of strength,” it states. 





Source link

Posted in
Limousine
Related Posts
Limousine Comments are Closed

Plan the perfect NYC Memorial Day weekend

Pack only what you need and avoid overpacking to streamline the check-in and security screening…

News Comments are Closed

LA’s worst traffic areas and how to avoid them

Consider using alternative routes, such as Sepulveda Boulevard, which runs parallel to the 405 in…

First Swiss A350 breaks cover | News

Lufthansa Group carrier Swiss has given a glimpse at its first Airbus A350-900 ahead of…

Sweden eyes extra capabilities for incoming Gripen E fighter | News

The Swedish air force is exploring the future introduction of additional capabilities for its Saab…

UK government examining competitive implications of Boeing-Spirit deal | News

UK competition regulators are reviewing potential concerns posed by Boeing’s planned acquisition of supplier Spirit…

Saudi Arabia’s Aramco splashes out on C-27J firefighting assets | News

Saudi Arabian oil giant Aramco is to acquire two Leonardo C-27J transports, for use in…

Adaptable wings take shape on Airbus Citation test aircraft

Airbus’s UpNext division has shown off the initial installation of the ‘eXtra Performance Wing’ on…

Eurodrone could gain new missions and additional partners, Airbus says | News

The four-nation Eurodrone programme is nearing its critical design review (CDR) activity, as discussions continue…

Terma highlights role of its PIDS+ pylon in protecting Ukraine’s F-16s | News

Terma used the Paris air show to highlight its role in helping to protect the…

France declares full operational capability for A400M fleet | News

The French air force has announced achieving full operational capability (FOC) status with its Airbus…

EASA and IATA seek ICAO advancement of plan to combat navigation interference

Increasing interference to navigation satellite systems has spurred the creation of a joint plan to…

Post a comment

Your email address will not be published.