[SilentReader888]

Interesting that SIA can make so much money.

Also Tiger cannot stand alone but need a big parent to integrate. Too bad for those who lost money in the share.

Originally Posted by SkyIsMighty

SIA more than doubles annual profit to S$804m

SINGAPORE – Flag carrier Singapore Airlines (SIA) yesterday reported that net profit more than doubled for the latest fiscal year, powered by lower fuel prices and the better performance of its group airlines.

For the year ended March 31, group net profit surged 119 per cent to S$804.4 million from S$367.9 million in the corresponding period a year earlier.

Despite the sharp improvement in profit performance, SIA warned of over-capacity creating pressure on yields and said the outlook remained cautious for the cargo business amid the economic slowdown in China and uncertainty in the rest of the world.

Group revenue for the year slipped 2.2 per cent to S$15.2 billion due to lower passenger revenue from the parent airline and lower revenue from its cargo operations. Total expenditure dropped 4 per cent to S$14.5 billion, led by a 41.3 per cent decline in the average jet fuel price, although this was offset partially by an increase in the hedging loss and the strengthening of the US dollar against the Singapore dollar. The hedging loss, said SIA, resulted from 53.8 per cent of the group’s fuel requirement being hedged at a weighted average price of US$100 (S$137) a barrel.

For the fourth quarter, group net profit surged to S$224.7 million from S$39.6 million in the same period last year, helped by lower fuel costs as well as a refund of S$117 million to its cargo division for a fine it had paid earlier. Revenue slipped 4.4 per cent to S$3.7 billion for the period.

SIA is contending with a challenging operating environment in key markets, caused in part by weak economic activity and rapid growth in capacity, evidenced by increasing promotional fare activity. However, the entrance of the Airbus A350-900 fleet will help to boost the group’s network competitiveness, improve operating efficiency and offer opportunities to open up more new routes on long-haul destinations, said SIA.

“In addition, the full ownership of Tiger Airways is expected to enhance synergies across the SIA Group. For the April-June 2016 quarter, advance passenger bookings are tracking positively against seat capacity,” added SIA.

The parent airline company earned an operating profit of S$485 million in the financial year, up S$145 million from the prior year. However, SIA Cargo’s full-year operating loss widened by S$28 million to S$50 million.

Scoot marked its first full-year operating profit since commencing operations, improving S$95 million year-on-year to S$28 million. Tiger Airways’ operating profit for the financial year was S$14 million, contrasting against a full-year loss of S$40 million incurred in the previous year. SilkAir reported a S$50 million year-on-year improvement to S$91 million in operating profit.