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Low fuel prices boost Singapore Airlines Group profits

The Singapore Airlines Group managed to almost double operating profits in the final quarter of 2015 as lower fuel prices helped offset weaker yields.

Passenger yield dropped by 4.6% year-on-year despite higher carryings across the group’s four airlines – SIA, Scoot, SilkAir and Tiger Airways.

The overall operating profit was up by 95.9% to S$288 million in the October to December period based on a 3.9% decline in revenue to S$3.9 billion.

SIA contributed the majority of the quarterly profit at S$181 million, against S$87 million in the same period a year earlier.

Scoot moved into the black with a third quarter operating profit of S$18 million, with SilkAir at S$33 million, Tiger Airways at S$9 million, SIA Engineering at S$29 million and SIA Cargo at S$2 million.

SIA saw fuel costs plummet by S$295 million in the three months although passenger revenue was down by S$92 million.

A sixth daily service to Bangkok will be added by SIA from March 27 to meet growth in travel demand.

Frequency to Colombo will rise from seven to ten flights a week and Milan from five to six flights a week during the summer.

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