Singapore Airlines Q3 operating profit up 96%

[flee 5]

• Healthy expansion at SilkAir and Scoot
• Slide in fuel prices provided cost relief to the Group, in a weak yield environment

GROUP FINANCIAL PERFORMANCE

Third Quarter Financial Year 2015-16

The Group recorded an operating profit of $288 million in the October-December 2015 quarter, an improvement of $141 million or 95.9% year-on-year.

Group revenue, at $3,941 million, was driven down ($158 million or 3.9%) by weaker yields from passenger and cargo operations, partially mitigated by higher carriage. Passenger yield declined 4.6% while cargo yield fell 13.5%.

Group expenditure was $299 million or 7.6% lower at $3,653 million, largely from a $354 million reduction in net fuel costs, arising from a 41.1% drop in average jet fuel price ($534 million), partially offset by the strengthening of the US Dollar against the Singapore Dollar ($77 million), and hedging loss ($72 million). 54.6% of the Group’s fuel requirement for the quarter had been hedged at a weighted average price of USD96 per barrel. Ex-fuel costs went up $55 million (2.2%), partly due to capacity expansion at SilkAir and Scoot.

More: http://www.singaporeair.com/pdf/Investor-Relations/Financial-Results/News-Release/nr-q3fy1516.pdf

SGX Filing: http://www.singaporeair.com/pdf/Investor-Relations/Financial-Results/SGXNET/sgxann-q3fy1516.pdf

 

[Pieter C. 5]

Hedging the fuel can be two-sided: amazing to see they fixed it at USD96 for just over half their requirements. Hope this won't last long, and they lower the fuel-charge as soon as possible !

 

P.S. How many airlines have done this sofar ? Cannot remember of any, actually

 

Any no one (passenger) is complaining, apparently !!!