The SIA Group has reported a solid operating profit of S$1,067 million for the 2018/19 financial year amid a challenging market environment, with Transformation initiatives contributing to a record revenue performance.
Although a decline from last year’s operating profit of S$1,549 million (S$482 million lower or -31.1%), the Group’s underlying performance was strong against the backdrop of a S$1 billion increase (+25.1%) in fuel cost due largely to a 21.6% increase in fuel prices, and the absence of one-off revenue items recorded last year (-S$243 million). Flown revenue growth was up S$829 million, with passenger flown revenue improving S$784 million (+6.4%), lifted by traffic growth of 8.5%, on a 6.4% increase in capacity.
Group net profit for the financial year was $683 million, $619 million or 47.5% lower year-on-year. The reduction was primarily due to the lower operating profit (-$482 million), in addition to higher non-operating costs.
