Singapore Airlines Cargo has turned its 2016-17 first-half loss of SGD 45 million (USD 33 million) into an operating profit of S$32 million for the same period of the 2017-18 financial year.
The SIA Group as a whole reported a net profit of SGD425 million in the first half, 32 per cent higher than the same period last year. The carrier pointed to higher operating profit – particularly the second quarter were operating profit surged nearly 70 per cent to SGD513 million – along with better performance by its associated companies.
SIA Cargo saw its first half revenue improve SGD122 million as cargo volumes grew 6.1 per cent, supported by what it said was a 6.7 per cent improvement in cargo yield. Expenditure was up SGD45 million, partly due to higher handling costs from increased carriage and higher aircraft maintenance and overhaul costs. Cargo load factor rose by 3.2 percentage points to 64.8 per cent.
The second quarter was even more of a game changer, with SIA Cargo reporting an operating profit of SGD26 million, reversing its loss of SGD11 million (+SGD37 million) in the same quarter last year. Revenue grew SGD65 million as freight carriage grew 5.4 per cent, further lifted by a substantial 9.1 per cent improvement in cargo yield on the back of improved trade conditions. Expenditure increased by SGD28 million, partially contributed by higher handling and aircraft maintenance and overhaul costs.
Going forward, SIA Cargo said it would “continue to pursue charter opportunities and deploy capacity to match demand.” Currently, SIA Cargo’s freighter network covers 19 cities in 13 countries with its active fleet of seven B747-400Fs.
From the Group perspective, the carrier said: “Headwinds remain as competitors mount significant capacity in key markets. Yields continue to be under pressure, despite some stabilisation in recent months.”