Singapore Airlines reports five-fold increase in net profit at $885 million

Singapore Airlines has reported an S$1.09 billion ($885.3 million) net profit for its fiscal year ended 31 March, an increase of more than five times over net income of S$215.8 million in FY2009-10. The strong results have been reported inspite of the carrier making provisions of S$201.8 million towards payment of anti-trust fines to the US, EU and South Korea.

Revenue generated in FY2010-11 increased 14% year-over-year to S$14.52 billion "as both carriage and yields recovered from depressed levels last financial year," SIA said in a statement. Revenue growth, the carrier said, was achieved inspite of many disruptions to operations over the year, ranging from volcanic ash and snowstorms in Europe and USA, floods in Australia, and earthquakes in New Zealand and Japan.

While overall costs for the year went up 5%, to S$13.25 billion, fuel costs, excluding hedging, rose 24%.

Operating profit was S$1.27 billion, significantly higher than the operating profit of S$63.2 million in FY2009-10.

Subsidiary units also performed well with SIA Engineering's operating income of $136 million up from a $110 million profit in FY2009-10. SIA Cargo reversed a S$145 million operating loss in the previous year to report operating profit of $151 million in this fiscal and SilkAir's S$121 million operating income more than doubled a S$49 million prior-year operating profit.

Passenger traffic increased 2.3% year-over-year to 84.8 billion RPKs. Capacity increased 2.3% rise to 108.06 billion ASKs, producing a load factor of 78.5% and passenger yield increased 14.4% to S$0.119.

As of 31 March SIA's fleet numbered 108 passenger aircraft, comprising seven 747-400s, 66 777s, 19 Airbus A330-300s, 11 A380-800s and five A340-500s. In the current fiscal, it expects to take delivery of eight A380-800s and decommission five 777s as well all of its seven 747-400s.

"The net decrease of four aircraft will bring the operating fleet to a total of 104 aircraft by March 2012," SIA noted. "The reduction in fleet size will be more than offset by increased utilization to produce passenger capacity growth of 6%" in the current fiscal year compared to FY2010-11.