Aviation News Item: 00072

11th Nov 2009

Source: evaint.com

Singapore Airlines continues to face challenging economic times. The Group recorded a net loss attributable to equity holders of $159 million for the second quarter of the financial year. This was an improvement of $148
million from the first quarter's net loss of $307 million. Group revenue for the second quarter at $3,082 million increased by $210 million (+7.3 per cent) from the previous quarter.
Expenditure was up $73 million (+2.3 per cent) quarter-on-quarter due mainly to an increase in jet fuel prices. Fuel costs ex-hedging for the second quarter at $942 million was $202 million higher than the previous quarter, while losses from fuel hedging fell $87 million to $200 million. This was partially offset by lower payrolls and cost savings in other non-fuel expenditure.
As a result, the Group posted an operating loss of $182 million for the second quarter, less than the $319 million loss in the first quarter.
The Parent Airline Company turned in an operating loss of $157 million for the second quarter. This was $114 million less than the loss in the previous quarter, reflecting improvement in load factors but also deterioration in yields. Consequently, operating loss for the half year was $428 million, including fuel hedging loss of $400 million.
The operating results of the main companies in the Group for the half year were:

Singapore Airlines Operating loss of $ 428 million (profit of $495 million in 2008)

SIA Engineering Operating profit of $ 47 million (profit of $57 million in 2008)

SIA Cargo Operating loss of $ 193 million (loss of $76 million in 2008)

SilkAir Operating loss of $ 5 million (profit of $5 million in 2008)

In the first half of the financial year, Singapore Airlines took delivery of four Airbus A380-800s and four Airbus A330-300s, and decommissioned three Boeing
B747-400s. As at 30 September 2009, the operating fleet comprised 109 passenger aircraft, nine B747-400s, 77 B777s, ten A380-800s, eight A330-300s and five A340-
500s, with an average age of 6 years and 1 month.
The Company has been adjusting capacity to match reduced demand. The unprofitable service to Vancouver via Seoul was discontinued from April 2009, while services to Moscow via Dubai and Tokyo via Bangkok were suspended from July 2009 and August 2009 respectively. Frequencies to Manchester, Zurich, Guangzhou, Dubai, Colombo, Dhaka, Mumbai and New Delhi were scaled back during the half year.
On the other hand, more flights to Manila were added, and the A380 was deployed to Paris, Hong Kong and Melbourne.
For the Northern Winter schedule, flight frequencies will continue to be adjusted to match seasonal demand.

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