SIA's first half net profit up 32% to SG$425m

The SIA Group reported a net profit of SG$425m in the first half of the 2017-18 financial year, SG$103m (+32.0%) higher than last year. This was the result of a higher Group operating profit (+SG$211m) and lower share of losses from associated companies (+SG$46m), in the absence of last year’s gain on SIA Engineering’s divestment of its 10.0% stake in Hong Kong Aero Engine Services (HAESL) and special dividends received from HAESL (-SG$178m). First half operating profit for the Group rose SG$211m, or 69.9% year-on-year to SG$513m on the back of a strong second quarter operating result (+112.8%).
Group revenue rose SG$401m year-on-year to SG$7,712m (+5.5%), with improvements seen in all business segments. Passenger flown revenue contributed SG$166m (+2.9%) on increased traffic (+6.6%), outpacing the reduction in passenger yield (-3.1%). Cargo revenue was up SG$123m on higher freight carriage (+6.1%) and yield (+6.7%). Engineering services registered revenue improvement of SG$52m (+26.9%) largely attributable to line maintenance, and aircraft and component overhaul activities.