SIA Q3 profit surges on exceptional gains

Singapore

BOOSTED by exceptional gains, Singapore Airlines' fiscal third-quarter net profit roughly quadrupled to S$202.6 million from S$50.1 million for the corresponding quarter a year earlier.

Expectations of a big boost from lower fuel prices fell flat. During the quarter, the group suffered hedging losses of S$216 million vis-a-vis a hedging gain of S$48 million previously.

Even though jet fuel prices had eased some 20 per cent year-on-year in 3QFY14/15 as crude oil prices slumped, SIA had hedged about 65 per cent of its fuel needs at US$116/barrel until end-March 2015.

Operating profit for the quarter ended Dec 31, 2014 eased to S$146.3 million from S$151 million. Stripping out subsidiary Tiger Airways - which made an operating profit of S$4 million - the group's operating profit would have fallen further to S$143 mi…