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Singapore Airlines Posts Q1 Net Profit: S$378M  
User currently onlineSInGAPORE_AIR From United Kingdom, joined Nov 2000, 13742 posts, RR: 19
Posted (6 years 1 month 2 weeks 6 days 14 hours ago) and read 5443 times:

Singapore Airlines Limited - A Member of Star Alliance - has posted a first quarter net profit of S$377.5M / US$277.1M.

Revenue increased S$510M / US$374.3M to S$4131.7M / US$3.0B.

Total costs augmented by S$630M / US$462M to S$3788.5M / US$US$2.78B.

Fuel expenditure grew by 64.7%. This was mitigated by hedging gains of S$349M / US$256M. The Airline Group spent S$1531.5M / US$1.124B.

Fuel now represents 40.4% of total costs.

Depreciation grew 19.6% (S$70.1M / US$51.5M) compared to the comparable quarter a year ago to S$427.2M / US$313.6M.

Increased expenditure led to an increase of 8.875% in unit costs from S¢8.0 / US¢5.9 per ASK to S¢8.7 / US¢6.4 per ASK. However, unit costs excluding fuel actually decreased by 2.2% due to prudent cost management despite a capacity increase of 9.4%.

Yields per RPK increased by S¢0.9 to S¢12.4 / US¢9.1. As a result, breakeven load factor increasd 0.6% to 70.2%

Four B77Ws and 2 A388s were delivered during the quarter offset by the decomissioning of 3 B744s.

SIA received liquidated damages, probably from Airbus S.A.S., totalling S$7.7M / US$5.7M.

Interestingly, shares of profits from associated companies, which primarily consists of Virgin Atlantic Airways, increased 246% to S$89.6M / US$65.8M.

Companies in the SIA Group "are tracking trends closely and are in a good position to react nimbly."

This strong result is again due to the hard work of Singapore Airlines employees to satisfy the passengers. One example are the latest generation of products that passengers have been enjoying.




"So far, as we can gauge by the forward demand situation, it's holding up," Singapore Airlines Chief Executive Chew Choon Seng told reporters on the sidelines of a shareholder meeting.

"We don't see any signs of corporate travel fading away suddenly. There is still business going on around the world."

"Going forward, given what we have seen unfolding in the global economy and the pressure on costs for fuel, I think the operating margin is going to be narrower...We have seen signs of it already," Chew said.

Sources: Singapore Airlines Limited and Thompson Reuters

[Edited 2008-07-29 09:53:07]


Anyone can fly, only the best Soar.
37 replies: All unread, showing first 25:
 
User currently offlineYellowtail From United States of America, joined Jun 2005, 6170 posts, RR: 2
Reply 1, posted (6 years 1 month 2 weeks 6 days 14 hours ago) and read 5415 times:

Well the IAH station certainly didn't help the profit  banghead 

Congrats to SQ.



When in doubt, hold on to your altitude. No-one has ever collided with the sky.
User currently offlineAirbazar From United States of America, joined Sep 2003, 8363 posts, RR: 10
Reply 2, posted (6 years 1 month 2 weeks 6 days 12 hours ago) and read 5254 times:



Quoting SInGAPORE_AIR (Thread starter):
"Going forward, given what we have seen unfolding in the global economy and the pressure on costs for fuel, I think the operating margin is going to be narrower...We have seen signs of it already," Chew said.

For those reading between the lines: 2-class A380's  Smile
Rumor has it that they're having a hard time selling the suites on their A380's. Apparently not enough passengers can justify the difference in money from a standard F fare.


User currently offlineKaitak From Ireland, joined Aug 1999, 12466 posts, RR: 37
Reply 3, posted (6 years 1 month 2 weeks 6 days 11 hours ago) and read 5204 times:



Quoting Airbazar (Reply 2):
Apparently not enough passengers can justify the difference in money from a standard F fare.

Quite possibly the J class service is a victim of its own success, in that once you've experienced that, it's hard to know how F Class could possibly be better. It wouldn't surprise me if they configured future 380s for 2 class, but left three classes in place for the likes of LHR and one or two other premium markets.

Is there any info yet on how the 330s will be configured and what kind of J Class product they will have? (Hopefully just 6, not 7 abreast!)


User currently offlineSingapore_Air From United Kingdom, joined Nov 2000, 13742 posts, RR: 19
Reply 4, posted (6 years 1 month 2 weeks 6 days 9 hours ago) and read 5100 times:



Quoting Airbazar (Reply 2):
Rumor has it that they're having a hard time selling the suites on their A380's

I don't know who started such a vicious rumour. Even so, I would suggest you ask the source of this rumour to present to you the loads in Singapore Airlines Suites. Assuming your definition of "hard time" is the same as mine then the data will reveal that such a rumour is bunkum. They are not "hard" to sell at all ! The yield is wonderful at a time like this too.



Anyone can fly, only the best Soar.
User currently offlineNicholaschee From Australia, joined Oct 2005, 661 posts, RR: 0
Reply 5, posted (6 years 1 month 2 weeks 6 days 9 hours ago) and read 5069 times:



Quoting Airbazar (Reply 2):
For those reading between the lines: 2-class A380's Smile
Rumor has it that they're having a hard time selling the suites on their A380's. Apparently not enough passengers can justify the difference in money from a standard F fare.

I wonder where those rumours have been coming from... probably someone who can't fly R class.

Quoting Kaitak (Reply 3):
Quite possibly the J class service is a victim of its own success, in that once you've experienced that, it's hard to know how F Class could possibly be better. It wouldn't surprise me if they configured future 380s for 2 class, but left three classes in place for the likes of LHR and one or two other premium markets.

Is there any info yet on how the 330s will be configured and what kind of J Class product they will have? (Hopefully just 6, not 7 abreast!)

J is J and F is F. F on SQ is miles ahead of J.


User currently offlineAirbazar From United States of America, joined Sep 2003, 8363 posts, RR: 10
Reply 6, posted (6 years 1 month 2 weeks 5 days 13 hours ago) and read 4816 times:



Quoting Singapore_Air (Reply 4):
I don't know who started such a vicious rumour. Even so, I would suggest you ask the source of this rumour to present to you the loads in Singapore Airlines Suites.

What I've been told is that the LF for F on the 744s flying the same route (SIN-LHR-SIN) is higher than the LF for R on the A380s.


User currently offlineAirNZ From , joined Dec 1969, posts, RR:
Reply 7, posted (6 years 1 month 2 weeks 5 days 12 hours ago) and read 4776 times:



Quoting Nicholaschee (Reply 5):
J is J and F is F. F on SQ is miles ahead of J.

And R on SQ is miles ahead of F.

Quoting Airbazar (Reply 6):
What I've been told is that the LF for F on the 744s flying the same route (SIN-LHR-SIN) is higher than the LF for R on the A380s.

Ah, but wait! that's not what you originally said. The above comment does not quantify the original which claimed "they're having a hard time selling the suites on their A380's".
I would respectfully suggest that such a rumour is precisely that, a rumour. I see no difficulty in them selling them whatever.....to the extent that I have a hell of a time trying to book them daily!


User currently offlineRyanair!!! From Australia, joined Mar 2002, 4755 posts, RR: 26
Reply 8, posted (6 years 1 month 2 weeks 5 days 5 hours ago) and read 4684 times:



Quoting Airbazar (Reply 2):
For those reading between the lines: 2-class A380's
Rumor has it that they're having a hard time selling the suites on their A380's. Apparently not enough passengers can justify the difference in money from a standard F fare.

This rumour of SQ having a "hard time" selling RCL seats is nothing but bullocks. Seriously, SQ has so far done a good job in creating a class which is really beyond First and there are people buying into that. This method of product differentiation has so far gone down rather well and there are no airlines that have even come close (other soon to be 388 operators like QF, EK).

PCL on the 744 is now considered very dated and the fact that the more expensive RCL 388 flights have replaced 2 of the London sectors, definitely those who do not want to spend the money on RCL would cramp into the 744. Despite being antiquated, it still offers a reasonable amount of service that only other airlines can dream about. So naturally the 744s LF would be higher based on this virtue.

The RCL is now made even more "exclusive" because now you can no longer accrue miles and upgrade from JCL so this could be a contributing factor for the PCL's high LF on the 744s. So you can imagine the yield of RCL because everyone who flies in there pays for it and no upgraders can be seen anywhere (US carriers, are you taking note?).

So do not listen to rumours because the load factors on LHR vv flights from SIN seldom dips below crucial levels. There is a reason why there are so many flights to LHR because people are filling into the planes and the fact that they are having 2 388s ply this route is an indication of very healthy loads as well. SQ is indeed one of the stronger airlines doing the Kangaroo route.



Welcome to my starry one world alliance, a team in the sky!
User currently offlineLeezyjet From United Kingdom, joined Oct 2001, 4042 posts, RR: 53
Reply 9, posted (6 years 1 month 2 weeks 4 days 19 hours ago) and read 4548 times:



Quoting SInGAPORE_AIR (Thread starter):
Interestingly, shares of profits from associated companies, which primarily consists of Virgin Atlantic Airways, increased 246% to S$89.6M / US$65.8M.

Oh dear, now what does SQ do, as they have already stated that they want rid of the VS shares, but if they are now performing better, does that mean we will see a U-turn ?.

 Smile



"She Rolls, 45 knots, 90, 135, nose comes up to 20 degrees, she's airborne - She flies, Concorde Flies"
User currently offlineAirbazar From United States of America, joined Sep 2003, 8363 posts, RR: 10
Reply 10, posted (6 years 1 month 2 weeks 4 days 18 hours ago) and read 4511 times:



Quoting AirNZ (Reply 7):
And R on SQ is miles ahead of F.

That's besides the point.

Quoting AirNZ (Reply 7):
Ah, but wait! that's not what you originally said. The above comment does not quantify the original which claimed "they're having a hard time selling the suites on their A380's".

Sorry, a bad choice of words. My point was that there's still more demand for F than there is for R.

Quoting Ryanair!!! (Reply 8):
So naturally the 744s LF would be higher based on this virtue.

No it's higher because passengers, or those paying for the ticket, can't justify the higher price for R, and this at a time when R is still a novelty.

Quoting Ryanair!!! (Reply 8):
So do not listen to rumours because the load factors on LHR vv flights from SIN seldom dips below crucial levels.

So what is it, rumor or fact?  Smile
So what will happen when the A380 is the only option on the route and people want to fly F without the extra cost? Will SQ eliminate R for F? Will they add more J seats? Or will they lower the price of R to match F on other carriers?
My guess is that R is just a short term gimmick and that in a year's time we will see something different. What that will be I have no idea but I'm very curious.


User currently offlineSingapore_Air From United Kingdom, joined Nov 2000, 13742 posts, RR: 19
Reply 11, posted (6 years 1 month 2 weeks 4 days 18 hours ago) and read 4489 times:

So what will happen when the A380 is the only option on the route and people want to fly F without the extra cost?[/quote]

Passengers who wish to do that will fly competitor airlines and experience a First Class product.

Quoting Airbazar (Reply 10):
Will SQ eliminate R for F?

Very very unlikely. However, SIA never says never. It is a flexible company which adapts continuously to the demands of its customer base as an aggregate.

Quoting Airbazar (Reply 10):
Will they add more J seats?

That wouldn't surprise me  Wink

Quoting Airbazar (Reply 10):
Or will they lower the price of R to match F on other carriers?

Singapore Airlines prices itself competitively at levels which reflect the holisitic product offering of the product in question. They won't price themselves out of the market.

Quoting Airbazar (Reply 10):
My guess is that R is just a short term gimmick

Singapore Airlines doesn't do gimmicks. That is left to other airlines. Some pull it off better than others.



Anyone can fly, only the best Soar.
User currently offlineAirbazar From United States of America, joined Sep 2003, 8363 posts, RR: 10
Reply 12, posted (6 years 1 month 2 weeks 4 days 14 hours ago) and read 4400 times:



Quoting Singapore_Air (Reply 11):
Singapore Airlines doesn't do gimmicks. That is left to other airlines. Some pull it off better than others.

Really? So what was the "LeaderShip"?  Smile


User currently offlineSQ772 From Singapore, joined Nov 2001, 1792 posts, RR: 5
Reply 13, posted (6 years 1 month 2 weeks 4 days 5 hours ago) and read 4302 times:



Quoting Airbazar (Reply 12):
Really? So what was the "LeaderShip"?

I see that you have defined 'gimmicks' differently from the context in which it was mentioned.



There's always a better way to fly...
User currently offlineAirbazar From United States of America, joined Sep 2003, 8363 posts, RR: 10
Reply 14, posted (6 years 1 month 2 weeks 3 days 18 hours ago) and read 4179 times:

From the Meriam-Webster dictionary:
Gimmick - a: an important feature that is not immediately apparent b: an ingenious and usually new scheme or angle c: a trick or device used to attract business or attention.

LeaderShip turned out to be a C. Only time will tell what R class will be  Smile


User currently offlineSQ772 From Singapore, joined Nov 2001, 1792 posts, RR: 5
Reply 15, posted (6 years 1 month 2 weeks 3 days 15 hours ago) and read 4107 times:



Quoting Airbazar (Reply 14):
LeaderShip turned out to be a C. Only time will tell what R class will be

What's LeaderShip?



There's always a better way to fly...
User currently offlineAirbazar From United States of America, joined Sep 2003, 8363 posts, RR: 10
Reply 16, posted (6 years 1 month 2 weeks 3 days 15 hours ago) and read 4093 times:



Quoting SQ772 (Reply 15):
What's LeaderShip?

A one-off unprofitable service offering for the sole purpose of being "First" and catching the attention of the media  Smile


User currently offlineSQ772 From Singapore, joined Nov 2001, 1792 posts, RR: 5
Reply 17, posted (6 years 1 month 2 weeks 3 days 13 hours ago) and read 4044 times:

Hahah... you sure have an interesting way of putting things 'into perspective'. Looking forward to hear more interesting (albeit often uninformed) observations  Wink Keep it up.


There's always a better way to fly...
User currently offlineZvezda From Lithuania, joined Aug 2004, 10511 posts, RR: 64
Reply 18, posted (6 years 1 month 2 weeks 3 days 10 hours ago) and read 3994 times:



Quoting Kaitak (Reply 3):
Is there any info yet on how the 330s will be configured and what kind of J Class product they will have? (Hopefully just 6, not 7 abreast!)

J class on the A330-300s will be 6 abreast.


User currently offlineAirbazar From United States of America, joined Sep 2003, 8363 posts, RR: 10
Reply 19, posted (6 years 1 month 2 weeks 2 days 16 hours ago) and read 3882 times:



Quoting SQ772 (Reply 17):
Hahah... you sure have an interesting way of putting things 'into perspective'. Looking forward to hear more interesting (albeit often uninformed) observations Keep it up.

Hey, I'm not saying it was a bad thing. SQ is arguably the best in every aspect of the business. I personally have flown them in all 3 classes. There's nothing wrong with offering a niche service for prestige and to help your business stand above the rest. It's not news that the "LeaderShip" service fell way below expectations, so much so that they removed the "LeaderShip" label and converted all the "Y+" seats to business seats.


User currently offlineEx_SQer From United States of America, joined Apr 2002, 1436 posts, RR: 5
Reply 20, posted (6 years 1 month 2 weeks 2 days 11 hours ago) and read 3803 times:



Quoting Airbazar (Reply 19):
It's not news that the "LeaderShip" service fell way below expectations, so much so that they removed the "LeaderShip" label

The "Jubilee" and "Megatop" labels were removed too.... did those services fall way below expectation as well?


User currently offlineRyanair!!! From Australia, joined Mar 2002, 4755 posts, RR: 26
Reply 21, posted (6 years 1 month 2 weeks 2 days 2 hours ago) and read 3717 times:



Quoting Airbazar (Reply 19):
It's not news that the "LeaderShip" service fell way below expectations, so much so that they removed the "LeaderShip" label and converted all the "Y+" seats to business seats.

Ill informed at best...

The LeaderShip titles were removed in 2005 because that name was already copyrighted by a Finnish shipping company. A folly on the SQ's management's part, no doubt. It has nothing to do with the name being removed due to an under-performing route. Now the latter part of your comment is correct.



Welcome to my starry one world alliance, a team in the sky!
User currently offlineUnited1 From United States of America, joined Oct 2003, 5951 posts, RR: 9
Reply 22, posted (6 years 1 month 2 weeks 2 days 2 hours ago) and read 3680 times:



Quoting Airbazar (Reply 14):
c: a trick or device used to attract business or attention.



Quoting Singapore_Air (Reply 11):
Singapore Airlines doesn't do gimmicks. That is left to other airlines. Some pull it off better than others.

Well SQ does have a few marketing gimmicks in my opinion the best known one is probably the SQ Girls.



Semper Fi - PowerPoint makes us stupid.
User currently offlineANstar From United Kingdom, joined Nov 2003, 5242 posts, RR: 6
Reply 23, posted (6 years 1 month 2 weeks 2 days 2 hours ago) and read 3674 times:



Quoting Airbazar (Reply 2):
Rumor has it that they're having a hard time selling the suites on their A380's. Apparently not enough passengers can justify the difference in money from a standard F fare.

I have heard that they werre achieving around a 50-60% LF.

just take a look at the GDS systems and I have not seen 1 flight with R0... it is all R4

Quoting Airbazar (Reply 10):
Will SQ eliminate R for F?

Possibly, but I doubt it.


User currently offlineKappel From Suriname, joined Jul 2005, 3533 posts, RR: 17
Reply 24, posted (6 years 1 month 2 weeks 1 day 23 hours ago) and read 3623 times:



Quoting Airbazar (Reply 19):
It's not news that the "LeaderShip" service fell way below expectations, so much so that they removed the "LeaderShip" label and converted all the "Y+" seats to business seats.

As mentioned above, the two things have nothing to do with each other. Further, the removal of the Y+ seats is only happening this year, and the Leadership titles have been gone for a few years.



L1011,733,734,73G,738,743,744,752,763,772,77W,DC855,DC863,DC930,DC950,MD11,MD88,306,319,320,321,343,346,ARJ85,CR7,E195
25 Airbazar : No but were marketing gimmicks nonetheless. My comment was made in the context of the statement that Singapore Airlines does not do gimmicks. I know
26 Airpearl : Thanks for posting the info. You seem to have missed quite possibly the most important piece of financial info from Thomson Reuters - namely net prof
27 DocPepz : Airpearl I'm afraid you're mistaken. The most important piece of information that was missed out was that passengers on the SIA A380 can enjoy the rom
28 Airpearl : Ah indeed... only with a slight financial slant this
29 Kappel : Ah, thanks for clearing that up, because your earlier post certainly seemed to imply that. Well, SQ had the habit for a long time to name their fleet
30 Olympic472 : With oil prices where they are today, airlines will be impacted one way or other. SQ's profit declined despite their payroll cost basis being lower th
31 Norcal773 : On the 744, yes but not on the 77W. The J and F seats are almost identical and I cannot justify paying the difference which is huge just so that I ca
32 SQ772 : If I understand your English correctly, you're saying that SIA removed the Leadership titles when they realised that the route wasn't performing well
33 Post contains links DocPepz : SQ's payroll costs are not necessarily lower than most first tier airlines. Please refer to the chart here: http://img81.imageshack.us/my.php?image=a
34 Singapore_Air : That's a very interesting analysis DocPepz. Cheers for that. Yes, what you say is very correct. However, that is not to say that Singapore Airlines'
35 DocPepz : Singapore_Air, since when was "analysis" a noun? Can I pick an analysis up and keep it in my pocket? I hear that SIA has started to charge the full v
36 Olympic472 : SQ communication regarding loads, Manchester market, costs, financial reports almost always come down to hype (marketing). Question what is publicized
37 DocPepz : Don't quite understand your point here.... but most companies do have a spin on everything and SQ is quite good at marketing-speak. But beyond the hy
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