By Liu Jiawen, compiled and reported
Singapore Airlines Group released its financial report for the first half of the 2011 fiscal year, showing a net profit attributable to shareholders of S$239 million (approximately NT$5.6165 billion), a 62% decline compared to the same period last year, primarily due to a sharp 45% year-on-year rise in fuel prices, which led to a S$747 million increase in fuel expenditure. Operating revenue fell to S$134 million (approximately NT$3.149 billion), also down S$462 million from the same period last year.
SIA Group reports 62% drop in profit for the first half of the fiscal year compared to the previous year. (Image provided by Singapore Airlines)
In the first half of this year, SIA carried a total of 8.5 million passengers, a 3.3% increase compared to the same period last year. Passenger growth slightly lagged behind capacity expansion, resulting in a 1.9% drop in passenger load factor to 77.5%. SilkAir saw a 9.4% increase in capacity in the first half, roughly matching the rise in passenger traffic, keeping its passenger load factor steady at 74.2%, while its overall break-even load factor also rose slightly by 1.8%. In cargo operations, SIA Cargo’s freight tonne-kilometers increased by 2.0% year-on-year, with the average cargo load factor up marginally by 0.1%.
SIA carried a total of 8.5 million passengers in the first half of this year, a 3.3% increase compared to the same period last year. (Image provided by Singapore Airlines)
In terms of route development, SIA increased capacity in growing markets such as Hong Kong, Guangzhou, Taipei, Mumbai, and Jakarta, while reducing capacity on direct flights to and from Los Angeles. SilkAir launched flights to Kolkata, complementing SIA’s services to the city, and also started services to Koh Samui.
Due to ongoing global economic uncertainty and weak consumer confidence, demand for air transport—both passenger and cargo—has declined. Adding to the pressure, the recent strengthening of the US dollar has further exacerbated the impact of high fuel costs. Currently, SIA Group maintains a strong balance sheet and will continue to monitor and respond appropriately to changes in business trends, while maintaining strict cost control.