Singapore Airlines reports high profit

victoria@aviationnews-online.com
By victoria@aviationnews-online.com May 18, 2018 16:35

Singapore Airlines reports high profit

Singapore Airlines (SIA) has reported a 148% increase in full-year net profit to the highest level since 2011. Revenue was up by 6.3% to S$15.8 billion for the full year, with improvements across all business lines, outpacing a 3.5% rise in costs, including an 18% increase in fuel. In the fourth quarter ended March 31, SIA operating profit rose to S$214 million from S$27 million in the prior-year period. The main airline booked a quarter profit of S$137 million profit compared to a loss of S$41 million in the same period last year.

SIA credited transformation initiatives including a new revenue management program, a new airfare pricing structure and the establishment of a centralized pricing unit, for the turnaround in revenue growth and profitability.

“The first year of the … three-year transformation program has shown good progress,” the airline said. “The next two years of the program will further build on initiatives around enhancements to the customer experience, revenue growth and improvements in operational efficiency.”

SIA has warned of continuing pressure from intense competition, costs and rising fuel prices despite strong bookings.

The airline has announced that SilkAir will merge with SIA following the upgrade of SilkAir aircraft interiors with new lie-flat seats in business class and seat-back in-flight entertainment systems.

SilkAir operates a fleet of 11 Airbus A320-family aircraft and 22 Boeing 737-800 and 737 MAX 8 aircraft.

victoria@aviationnews-online.com
By victoria@aviationnews-online.com May 18, 2018 16:35