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Singapore Airlines Group has just announced a profit of S$1.241B / US$792 267
Revenue rose to a record S$13.341B / US$8.5B
Group fuel expenditure rose to a record S$4.24B / US$2.7B, up 57.5%
Group expenditure excluding fuel declined 1.4% to S$7.888B / US$5.01B
Singapore Airlines Limited:
Capacity grew 4.6%
The Airline carried a record 16 995 000 passengers (up 6.6%)
Passenger load factor went up 1.5% to 75.6%
Passenger yield went up 5.0% inclusive of fuel surcharges to S¢10.6 / US¢
6.767 per km
Passenger unit cost went up 7.1% to S¢7.5 / US¢4.788 per km
Hence, the breakeven load factor rose 1.5% to 70.8%
Fuel accounted for 34.9% of expenditure (up 9.8% from last year)
The average jet fuel price in the year rose to US$76.25 per barrel (up
Fuel surcharges only recovered up to 50% of the fuel increase
Singapore Airport Terminal Services (sats) - one with you - recorded a
12.4% increase in profit to S$188.6M / US$120.4M
SIA Engineering Company (SIAEC) - no slogan - increased its profit by 35.3%
SIA Cargo - We've Got What It Takes - made a profit of S$135.3M / US$86.4
SilkAir - The Regional Wing of Singapore Airlines - contributed S$20.6M /
In this year, specifically between November 2006 and 31 March 2006, SIA will
receive 7 A380-800s and 9 Boeing 777-300ERs. 5 Boeing 747-400s will be
decomissioned from service.
Singapore Airlines Limited has already increased frequencies to ADL
(now daily), TPE
(now thrice daily) and PEN
(now thrice daily). In the Northern Winter schedule (from
October 2006), the Airline will add another service to Shanghai Pudong making
it 5x Daily. The Airline has already announced the commencement of services to MXP
Capacity will grow in total by 4%.
Minister Mentor Lee Kuan Yew suggested (strongly) that Singapore Airlines Group should divest its subsidiaries, Singapore Airport Terminal Services (sats) and SIA Engineering CompanY (SIAEC). Mr. Chew commented that the board has taken this into consideration at their last board meeting this month and reviewed the options thoroughly. However there was no concensus and the board would make an annoucement when appropriate.
When pressed, the issues to deal with are the fact that SIAEC and sats are both very profitable and efficient and it just remains to be seen how much more profitable and efficient they can become. There is also the H.R. factor.
The Board of Directors has issued a mandate for the Airline to enter "final
negotiations" with Airbus and Boeing (listed alphabetically). The outcome
depends on the "response from the manufacturers".
Source: Combination of Singapore Airlines Limited Financial Results meeting, SIA Training Centre | Singapore Airlines Limited News Release
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