The SIA Group has achieved a net profit of SG$206 million in the first half of the financial year, SG$10 million (+5.1%) higher than last year. Revenue rose SG$418 million (+5.3%), primarily from strong growth in passenger flown revenue, partially offset by a reduction in cargo flown revenue, while higher expenditure (+$431 million or 5.8%) reflected enlarged operations. Accordingly, operating profit for the Group was SG$413 million, down SG$13 million or 3.1% compared to the same period last year.
The Group recorded a reduction in share of losses from associated companies (+SG$36 million), mostly from Virgin Australia, and a higher share of profits from joint venture companies (+SG$19 million). These were offset by increased net finance charges (-SG$54 million) due to the recognition of interest expense arising from lease liabilities following the adoption of IFRS 16 Leases and additional financing for fleet renewal and expansion.
Passenger flown revenue for the Group was up SG$514 million (+8.2%), lifted by 7.6% growth in traffic. Load factor improved 1.0 point to 84.6%, a record for the first-half, as uplift outpaced the increase in capacity (+6.4%). Notwithstanding the significant capacity expansion, RASK (revenue per available seat-kilometre) continues its upward trend, improving 1.3% to 7.7 cents for the first half, the highest since the commencement of the Group’s transformation programme. However, cargo flown revenue declined by SG$138 million (-12.5%) as a result of poorer yields (-6.3%) and lower loads carried (-6.5%).
