Dividends, absence of losses from Tiger Airways boost Q2 bottom line of SIA

SINGAPORE Airlines turned in a net profit of S$213.6 million, up from S$90.9 million, for the second quarter ended Sept 30 as the bottom line was boosted by higher dividends from long-term investments and an absence of share of losses from Tiger Airways.

Tiger was classified a subsidiary after SIA raised its stake in the budget carrier from 40 per cent to nearly 56 per cent.

Revenue eased from S$3.91 billion a year ago to S$3.84 billion while earnings per share came to 18.3 Singapore cents, up from 7.7 cents.

Meanwhile, operating profit for the quarter under review was lower, falling from S$131.7 million to S$128.6 million as the decline in revenue outpaced a decrease in expenditure.

For the six months, net profit clocked S$304.8 million, up from S$125.7 million previously, while revenue dipped from S$7.59 billion to S$7.58 billion as passenger carriage and yields declined.

The group has declared a dividend of ten Singapore cents, payable on November 27.

SIA said: "Uncertainty in economic conditions persists, exacerbated by concerns about China's slowing economy, which have led to weakening emerging-market currencies and volatility in stock markets. The outlook for both passenger and cargo traffic is cautious. Yields remain under pressure in the face of capacity additions from other airlines."