SIA’s First Quarter Revenue Up 1.7%

Ser Jing - Checking In On SIA Engineering's First Quarter Results (pic) Singapore Airlines Limited (SGX: C6L), released its 1Q 2014 results after market closed yesterday. The period covers 1 April 2013 to 30 June 2013.

A Look at the Numbers

The revenue was $3.84 billion, a 1.7% improvement over the previous year. This was mainly due to $75 million recognised from settlement pertaining to changes in aircraft delivery slots. Passenger revenue, excluding the settlement, improved slightly over the 1Q 2013 on the back of 1.8% growth in passenger carriage.

SIA earned a net profit of $122 million, an improvement of 56% over 1Q 2013. However, this is on the back of net one-off gains such as sale of SIA’s stake in Virgin Atlantic Limited to Delta Air Lines and impairments. The exceptional items gave a gain of $18.4 million. Without these gains, the profit before taxation (PBT) would have been $115.7 million, a slight dip from $115.8 the previous year.

No dividends has been declared for 1Q 2014.

Future Outlook

SIA said that, “Operating environment continues to be impacted by the uncertain global economic climate and high fuel prices. Forward passenger bookings for the next few months are expected to be higher against the same period last year and in line with the planned increase in passenger capacity. However, yields are expected to be weaker as a result of the intense competitive environment. On the cargo front, demand is expected to remain depressed, in turn placing pressure on loads and yields. In this challenging operating environment, the Group will continue to monitor demand trends closely and make appropriate adjustments to flight schedules and capacity, alongside a continued focus on cost discipline.”

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