Scoot looks to raise top line to tackle cost pressures
GIVEN the limits to the ways costs can be cut, Scoot – the budget arm of Singapore Airlines : C6L 0% (SIA) – will strive to raise revenue from seats sold and from add-on offerings to soften the impact of rising costs on its profit margins, its chief executive officer Leslie Thng said on Thursday (Mar 7).
In a recent quarterly update, SIA group posted a 19.3 per cent decline in operating profit for the third quarter of FY2024. This was attributed to a 9.5 per cent increase in non-fuel expenditure, and a 9.1 per cent rise in net fuel cost.
Scoot’s operating profit for the quarter amounted to S$39.8 million, a 70.5 per cent drop from that in Q3 FY2023. Passenger yield dipped 15.3 per cent as its competitors added capacity; unit cost rose by 3.2 per cent in an inflationary environment.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Transport & Logistics
More than 800 Hyundai, Kia EVs in Singapore to undergo recall for electronics fault
Lufthansa, Air France-KLM to cut costs after tough first quarter
Stellantis misses forecasts with 12% revenue drop in Q1, sees stronger H2
Australian budget airline Bonza collapses, passengers stranded
Mercedes earnings drop on model changeovers, EV slump
Bangkok airports set for US$4.8 billion expansion as tourism booms