Singapore Airlines Group revealed high fuel prices, increasing yield pressure and an uncertain economy weighed heavily on the 2011 – 2012 financial performance.
The Group, consisting of parent airline company Singapore Airlines and its subsidiary, joint venture and associated companies, saw a drop in net profit by 69 percent to SGD336 million.
Despite these challenges the Group’s revenue grew by SGD333 to a massive SGD14,858 million, a growth of two percent.
However expenditure rose at a fast pace, with jet fuel prices high throughout the year translating to a 29 percent increase in fuel costs before hedging. Operational profit therefore fell 77 percent from SGD985 million to SGD286 million.
Although Singapore Airlines achieved a 3.66 percent year-on-year growth in passenger carriage, it lagged behind capacity expansion with a drop of 1.1 percent for the same period.
Results of the financial audit were for year ending 31 March 2012. At the time Singapore Airlines’ operating fleet consisted of 100 passenger aircraft with an average age of six years and two months.
Added capacity to several destinations in this period included a demand for Australian services, with increased frequencies to Adelaide, Brisbane and Perth. Frequency of flights to Houston (via Moscow), Manchester (via Munich), Taipei and Abu Dhabi were scaled back.
The Group is committed to maximise operating efficiency, seek growth opportunities and demand, and review unprofitable routings. With a strong financial position, the Group is well positioned in moving forward and facing challenges that lay ahead.
Source = e-Travel Blackboard: K.W