Singapore Airlines Limited - a member of Star Alliance - The Airline Network For Earth - is due to report Q2 and hence H1 FY03/04 profits.
Dow Jones Newswires polled four analysts with estimates ranging from S$62 million / US$35 513 600 to S$150 million / US$85.92 million. The concensus was for a net profit of S$95.5 million / US$54 702 400.
Bloomberg polled three analysts and they have a concensus of only S$65 million / US$37.232 million.
"There is a turnaround in traffic pick-up and you can see SIA increasing capacity, especially to China where demand is pretty strong. The pick-up in yields is tentative. If that improves, then there may be some pick-up' in investor interest," Daiwa SB Investments (Singapore) Ltd's Lim Soo Hai said. "Most analysts are looking at normal times for the second half, especially during the year-end travel period. Business travel has also come back very fast," commented Standard & Poor's Investment Services' analyst Vxincent Ng.
"The second-quarter result is still probably going to be nothing to boast about, but at least it ought to be profit," said Timothy Ross of UBS. Dow Jones reports that analysts estimate Q2FY02/03 to have been S$296 million / US$169 548 800. The Airline only started quarterly reporting this year. The airline reported a Q1 loss of S$312 million / US$ due to the outbreak of Severe Acute Respiratory Syndrome in the region and the war on Iraq.
Demand increased during July to September which will help Q2 profits, in addition to the cost savings that SIA Group has made. It was with regret that the Group released 596 employees. Staff took pay cuts varying from 5% to 20% and no pay leave was imposed on pilots and cabin crew which has since been stopped. Those cost savings saved S$74 million / US$42 387 200 in Q1 and analysts say that S$40 million / US$22.912 million in Q2.
"The expected profit in the second quarter, however, won't be able to pull SIA out of loss for its first half," but the airline would post a "reasonable profit" for the Full Year said a Singaporean broker - making it the only major airline in the world to not report a full year loss along with Southwest Airlines of the United States of America. Analaysts estimate the H1 loss to be between S$209 million / US$119.7152 million to S$160 million / US$91.648 million.
Information gathered from Dow Jones / Yahoo,