flee 5 Report post Posted November 6, 2014 SINGAPORE: Singapore Airlines logged a 43.5 per cent drop in second quarter earnings on Thursday (Nov 6) and warns that the outlook remains challenging. Net profit for the three months ended in September came in at S$91 million dollars, down from S$161 million in the same period a year ago. Operating profit rose from S$86.9 million to S$131.7 million year-on-year. Group revenue was almost flat at S$3.9 billion. Passenger revenue increased marginally, as higher passenger carriage was largely offset by a 0.9 per cent decline in yields. The carrier said the drop in group net profit was largely due to losses from its associated companies, which includes Tigerair. Last month, Tigerair, a budget carrier that Singapore Airlines is raising its stake in, posted a net loss of S$182.4 million for its fiscal second quarter. More here: http://www.channelnewsasia.com/news/singapore/singapore-airlines-q2/1457858.html SIA Press Release: http://www.singaporeair.com/pdf/Investor-Relations/Financial-Results/News-Release/nr-q2fy1415.pdf SGX Filing: http://www.singaporeair.com/pdf/Investor-Relations/Financial-Results/SGXNET/sgxann-q2fy1415.pdf Analysts' Presentation: http://www.singaporeair.com/pdf/Investor-Relations/Financial-Results/presentation/slide-staffcommq2fy1415.pdf Share this post Link to post Share on other sites
flee 5 Report post Posted November 10, 2014 Singapore Airlines reports fiscal 1H profit despite challenging market conditions & Tigerair losses Singapore Airlines (SIA) and its regional subsidiary SilkAir remained profitable in the quarter and half ending 30-Sep-2014 despite extremely challenging market conditions in Southeast Asia. But the group’s net profit has been on the decline due primarily to the heavy losses at LCC affiliate Tigerair. SIA is now in the process of increasing its stake in Tigerair which pending approvals will result in the LCC becoming a subsidiary. SIA is not considering taking over Tigerair entirely and instead will focus on pursuing synergies, particularly with its long-haul LCC subsidiary Scoot, while supporting Tigerair’s ongoing turnaround efforts. SIA’s long-term outlook is relatively bright but several components of its strategy, including its investments in the LCC sector and its new full-service joint venture in India, will likely continue to have a negative impact on earnings for the short to medium term. The fact the SIA Group has so far been able to stay in the black overall is a noteworthy accomplishment. Despite a slowdown, SIA outperforms most Southeast Asian competitors: http://centreforaviation.com/analysis/singapore-airlines-reports-fiscal-1h-profit-despite-challenging-market-conditions--tigerair-losses-195569 Share this post Link to post Share on other sites
leon t 0 Report post Posted November 10, 2014 SIA's profits will be hit even higher for 2015 quarters - as Tiger Air have been losing and total losses will be as high as S$250 million and SQ is taking over 71% of Tiger (but as a group its more as Temasek also have stake in Tiger and owns majority of SQ). Adding to SQ's drag on profits is also its 100% owned Scoot which last year have reported S$80 million losses - and with Scoot taking deliveries of its 787s from early next year, believed Scoot will have higher losses due to higher financial payments burden for these aircrafts. For Silkair, its profits is just barely $4million and next year can be a trying period. Share this post Link to post Share on other sites
flee 5 Report post Posted November 10, 2014 Fortunately, oil prices have tumbled and it will buy airlines like MH and SQ some time.... And airlines like AK are again offering zero fares. Share this post Link to post Share on other sites
