SIA reports lower net profit for Q1, but operating profit rises

SINGAPORE Airlines (SIA) reported a net profit of S$235.1 million for the first quarter ended June 30, 2017, down about 8.4 per cent from a year ago.

The drop in net profit was due to the absence of last year's gain on SIA Engineering's divestment of its 10 per cent stake in Hong Kong Aero Engine Services (HAESL) and special dividends received from HAESL. This was partially offset by higher operating profit and lower share of losses from associated companies.

At the operating level, operating profit for the quarter jumped 45.3 per cent to S$280.8 million.

Revenue edged up 5.6 per cent to S$3.86 billion while earnings per share fell from 21.7 Singapore cents to 19.9 cents.

SIA said: "With the completion of the Scoot-Tigerair integration under the Scoot brand name on 25 July, there will be more expansion opportunities for the low-cost segment of the group portfolio, as the merged entity's strong Southeast Asia presence will help to generate connecting traffic with long-haul flights."

It added: "The group's transformation programme is also ongoing, to identify new opportunities for revenue generation, and to restructure its cost base."