Singapore Airlines Posts FY07/08 Profit:

[Singapore_Air]

Singapore Airlines Limited, A Member of Star Alliance - has posted a full year net profit of S$2.1B / US$1.5B.

Revenue rose 10.2% to S$15.9B / US$11.7B.

Passenger yield increased 11% to Są12.1 / USą8.8 per passenger kilometre. Passenger load factor for the year

Expenses augemented by 5.1% to S$13.8B / US$10.1B. Fuel costs aggrandised by (<b>only?!</b>) 2.2% to S$5B / US$3.6B.

This result was thanks due to the hard work and effort of Singapore Airlines Group employees.

[Nick C]

Business has been good.

http://www.singaporeair.com/saa/en_U...easeFY0708.pdf

[flo]

2.1B S$ ... impressive. Thats even more than I thought. I was hoping for 2B S$ and it even surpassed that! Wow.

[zvezda]

The increased yield was largely the result of the new C seats.

[stargold]

My guess is that most of the extra profits this year come from reduction of the caviar service

[SQflyergirl]

Impressive numbers.

No doubt gives their management further mandate to do as they please.........

[UMD]

The increased yield was largely the result of the new C seats.

Not surprising as it is a very good product. Congratulations SQ!

Now, can you please bring back some premium treatment to your PPS members in the lounge?

[Singapore_Air]

No doubt gives their management further mandate to do as they please.........

Well one notes the return on equity slipped a few basis points so you're probably right!

[MAN Flyer]

My guess is that most of the extra profits this year come from reduction of the caviar service

Along with stopping the Dom and all the money saved on the poor SKL F...

[stargold]

Along with stopping the Dom and all the money saved on the poor SKL F...

Just think, what kind of proper lounge they could build at SIN T3 with the $1.5bn... with proper champagnes and everything!

[Singapore_Air]

So, yes, the results were fantastic with an underlying Singapore Airlines Group operating profit of S$2.125B / US$1.55B. Singapore Airlines operating profit up 60.1% while SIA Cargo swung around to the tune of S$164M to record a profit from a small loss the year before. Another star performer seems to have been SilkAir interstingly with operating profit doubling.

Importantly, the breakeven load factor fell 3.1% to below the 70% mark at 69.4% thanks to a yield rise of 11.0% and a unit cost rise of 6.3%.

SIA Cargo over the past year has undergone a route rationalisation program. From what I recall, the Airline has cut some routes such as JFK but has taken advantage of new freedoms of the air (such as a standalone BRU->United States routing) and new stations such as Nairobi providing growth.

At 31 March 2008, the passenger fleet had an average age of just 77 months.

The airline's total debt stood at S$1.65B / US$1.2B and is in a net cash position with a debt:equity ratio at a lazy 0.11 times.

Interestingly, associated companies made a small loss of S$6M / US$4.4M. The main associated company is Virgin Atlantic. Tiger Airways was profitable and cash flow positive in the last quarter I believe. However, in all, associated companies did contribute S$110.2M / US$80.6M to the bottom line, up 39% year on year.

Staff costs rose 6.4%, outpacing the capacity rise. Almost all costs rose.

Non-fuel CASK appears to be: Są7.74 per ASK / USą5.66 per ASK.

The airline spent S$100.2M on finance charges but got S$181.2M back in interest income, a net gain of S$81M / US$59.2M

Unfortunately, the airline was taxed a hefty sum but in the end, net profit came to S$2.137B / US$1.56B.

The Airline did say though that:

"However, the current turmoil in global financial markets has clouded the outlook for discretionary air travel. In addition, jet fuel prices, in step with crude oil prices, look set to stay well above US$100 per barrel this year. The combination of a global economic slowdown and record high fuel prices will make this a more challenging year for airlines.

With strong finances and a united work team, SIA is well positioned to weather the storm."

There has not been much reaction but:

""The results blew the consensus away. It seems their fuel hedging has been done pretty well which contributed to higher operating profit," said Morgan Stanley analyst Chin Lim."

[Singapore_Air]

I've just noticed that SIA has recognised "Recognition of liquidated damages".

So if you go back...

Q1 FY0708: S$13.7M
Q2 FY0708: S$13.9M
Q3 FY0708: S$13.8M
Q4 FY0708: S$13.8M

Total FY0708 = S$55.2M / US$40.4M this financial year.

[LionCity]

Well one notes the return on equity slipped a few basis points so you're probably right!

You are probably right. Hope it is not another excuse to be made use of to cut premium service. Last year ROE was higher due to an exceptional gain of SGD 421 Million. There was none this year. Taking out this exceptional gain, the ROE for this year is definitely better.

[9V-JKL]

Expenses augemented by 5.1% to S$13.8B / US$10.1B. Fuel costs aggrandised by (<b>only?!</b>) 2.2% to S$5B / US$3.6B

Have not counted but haven't the fuel surcharges we pay exceeded 2.2%?

[flyguy]

believed one major contribution to its profits is not so much cutting back on "caviars n " champagnes" but the all important its fuel prices and its surcharges which SQ have been fairly quick to raise surcharges n hardly reduce when prices come down and in reality as SQ hedges its fuel for 6 months and some 12 months ahead - hence actually altho today's avgas maybe above US$100 but SQ would be still using its fuel from its earlier hedges when the prices were at US$90 or even less depending on when and how long it was hedged before - but its surcharges have been upped since and another round this month. Thats why its fuel bill only increased by some 2 - 3%.