SIA Group posts big jump in quarterly profits, warns of challenging outlook ahead

[chiraagnt]

Some snippets of its announcement:

Net profit S$257 million up from S$91 million in the corresponding period the year before
Operating Profit $193 million up from $111 million the year before
All SIA's businesses (SQ,TZ,MI & TR) recorded an increase in operating profit
Fuel costs fell S$357 million in the quarter
SQ yields declined 3.7%, TZ yields declined 3.8% and MI yields declined 8.2%
SQ cargo suffered a deterioration in revenue and operating profit
The group booked a S$41 million loss in its share holding of Virgin Australia.

SIA Group: "The business outlook for the Parent Airline Company remains challenging amid economic weakness and geopolitical concerns in some markets. Competition remains intense with aggressive capacity injection, and yields will continue to remain under pressure. Yields will be further diluted if key revenue-generating currencies depreciate against the Singapore dollar." Source: Company statement, 28-Jul-2016.

Source(s): http://centreforaviation.com/news/si...hlights-580398

[flyguy]

The main primary sole factor responsible for its jump in profitability is the drastic drop in fuel prices. However there's still faiurly substantial surcharges that SIA still maintain as just bought a ticket from mel-sin-mel in late November and the surcharges was a whopping $245. Although SIA drop the word "fuel surcharges" but what are these surcharges then as airport and aviation taxes are given separately.

[SQ228]

The main primary sole factor responsible for its jump in profitability is the drastic drop in fuel prices. However there's still faiurly substantial surcharges that SIA still maintain as just bought a ticket from mel-sin-mel in late November and the surcharges was a whopping $245. Although SIA drop the word "fuel surcharges" but what are these surcharges then as airport and aviation taxes are given separately.

I also just 'bought' the same ticket for the same month. Mine was a saver redemption but it cost $425! For a couple hundred more I could have bought an actual ticket. I think they should rename the "fuel surcharge" as "redemption surcharge".