SIAL NOTCHES $259 MILLION OPERATING PROFIT
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Singapore Airlines earned an operating profit of $ 259 million in the 2013-14 financial year, an increase of $30 million (+13.1 per cent) over last year. In the financial year ended 31 March 2014, the Parent Airline Company carried 18.6 million passengers, an increase of 2.3 per cent over last year. Passenger carriage (in revenue passenger kilometres) rose 1.4 per cent on the back of 1.9 per cent growth in capacity (in available seat-kilometres).
Consequently, passenger load factor decreased by 0.4 percentage points to 78.9 per cent. SilkAir recorded a 4.0 percentage-point drop in passenger load factor to 69.6 per cent, with its 5.6 per cent growth in traffic lagging behind capacity injection of 11.7 per cent.
The Board of Directors recommends a final dividend of 11 cents per share for the financial year 2013-14. Having considered the sound financial position of the Company, which is adequate to grow its business organically and to pursue strategic opportunities, the Board of Directors recommends a special dividend of 25 cents per share.
As at 31 March 2014, the operating fleet of the Parent Airline Company comprised 103 passenger aircraft - 58 Boeing 777s, 26 A330-300s and 19 A380-800s, with an average age of six years and nine months. In the year to March 2015, the Parent Airline Company expects to take delivery of five A330-300s and three 777-300ERs, decommission three 777-200s and return one A330-300, one 777-200 and one 777-200ER on expiry of their leases. In addition, two 777-200ERs will return and be decommissioned upon expiry of their leases to Royal Brunei Airlines. This will bring the Parent Airline Company’s operating fleet to a total of 105 aircraft by March 2015. Capacity growth of about 1 per cent is planned for the coming financial year.
During the quarter, SilkAir took delivery of its first two Boeing 737-800 aircraft and decommissioned two Airbus A320-200s. As at 31 March 2014, SilkAir operated a fleet of 24 aircraft – 16 A320-200s, six A319-100s and two 737-800s. In FY2014-15, SilkAir will take delivery of seven 737-800s and decommission four A320-200s, bringing its operating fleet to 27 aircraft by March 2015. Capacity is expected to expand by approximately 13 per cent in FY2014-15.
As at 31 March 2014, Scoot’s fleet comprised six 777-200s. Scoot will take delivery of its first of 20 firm-ordered Boeing 787 aircraft, a 787-9, in November 2014. For the financial year 2014-15, Scoot expects to take delivery of two 787-9 aircraft and decommission one 777-200.
The operating environment for the Group continues to be challenging with intense competition in many areas, and economic uncertainty in key markets. Passenger bookings in the current quarter are expected to match the planned increase in capacity. However, yields are expected to remain under pressure due to promotional activities undertaken to support loads, and other airlines offering aggressive fares while increasing capacity.