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SIA Q2 net profit jumps 68% on better results from associates, JVs
SINGAPORE Airlines (SIA) on Tuesday posted a 68 per cent jump in net profit for the second quarter to S$94 million from S$56 million a year ago, owing to improvement in share of results from associates and joint ventures (JVs) which was partially offset by higher net finance charges.
Operating profit however slipped 8.6 per cent to S$213 million with higher expenditure due to capacity injection being the chief culprit, having outstripped revenue growth of nearly 4 per cent to S$4.2 billion from S$4.1 billion.
Passenger revenue grew 7.5 per cent for the three months to September while cargo revenue declined 16.3 per cent from a year ago.
Non-fuel expenditure rose 6 per cent on capacity increase while net fuel cost was higher by 1.7 per cent in the period under review.
Operating performance across the companies in the group was mixed, with the parent airline company and SilkAir's profitability largely unchanged.
Operating profit for the parent airline company fell 1.7 per cent to S$233 million as revenue and expenditure were higher by similar magnitudes. Similarly, SilkAir's higher revenue, largely from traffic growth, was matched by an increase in expenditure - this was partly contributed by the 737 MAX 8 grounding - with operating loss staying flat at S$3 million compared to last year.
Scoot's operating loss widened to S$39 million as higher costs offset higher passenger revenue on the back of capacity growth.
SIA Engineering held up well with a 73 per cent jump in operating profit to S$19 million for the second quarter due to higher revenue from the airframe and line maintenance segment, lower subcontract costs and a favourable exchange variance. This was however partly offset by lower revenue from the engine and component segment.
The group's earnings per share rose accordingly to eight Singapore cents from 4.8 cents.
SIA Group has declared an interim dividend of eight Singapore cents per share, same as the previous corresponding period, to be paid on Nov 27.
For the first-half year, group net profit improved 5.1 per cent to S$206 million from S$196 million on the back of a 5.3 per cent rise in revenue to S$8.3 billion.
SIA shares fell four Singapore cents or 0.4 per cent to finish at S$9.43 on Tuesday.