Singapore Airlines’ full-year profit rises to seven-year high

SINGAPORE — Singapore Airlines (SIA) posted a profit of S$893 million in the financial year ended March 31 — the highest since 2011, and a 148-per-cent increase from a year ago.

In a press release issued on Thursday (May 17), SIA said the performance was largely attributed to a higher operating profit and an impairment of the Tigerair brand and trademarks last year, among other factors.

The previous financial year saw the national carrier post a profit of S$360 million.

For FY2017/2018, SIA's group revenue rose by 6.3 per cent to S$15.8 billion, with improvement seen in all business segments. In the fourth quarter, operating profit for the group increased S$187 million — compared to the same period in the last financial year — to S$214 million.

The company announced a final dividend of 30 cents per share for the financial year, on top of the interim dividend of 10 cents per share paid to shareholders in December.

The group's parent airline saw an increase of S$317 million in operating profit to S$703 million from a year ago, while total revenue increased S$490 million, driven partly by a S$210 million improvement in passenger flown revenue.

Scoot's operating profit increased by S$10 million for the financial year, with total revenue up 13.9 per cent, as passenger carriage rose.

Meanwhile, SilkAir's operating profit fell by S$58 million, due to higher spending which outpaced revenue gains. Total revenue rose by 3 per cent, led by higher passenger carriage.

"The parent airline company's performance was boosted by early results from the transformation initiatives," SIA said. Examples include the implementation of a new revenue management system, a new airfare pricing structure and the establishment of a centralised pricing unit.

The company is one year into a three-year transformation programme. The next two years will involve initiatives to enhance the customer experience, grow revenue and improve operational efficiency, it said.

Going forward, SIA noted that intense competition in key operating markets and cost pressures remain.

Fuel prices have been "trending higher" and "volatility is expected to persist in the months ahead", the group said.

The overall demand outlook for cargo remains moderately positive, but is "subject to geopolitical uncertainties which may have implications on global trade," it added.