Serious Sinkie Airlines Revenue Also Collapsed!

[Pinkieslut]

news.asiaone.com
Singapore Airlines Q2 profit hit by price wars

SINGAPORE - Singapore Airlines' reported a 15.5 percent fall in its second-quarter operating profit to S$109 million on Thursday, blaming "excess capacity and aggressive pricing".

The flagship full-service airline unit contributed S$79 million to the result for the three months ended Sept. 30, with SIA's Silkair regional airline unit and its low-cost subsidiaries Scoot and Tigerair reporting profits as well.

"Most companies in the Group recorded weaker operating results amid a sluggish global economy," SIA said in statement filed to the stock exchange.

"However...low-cost carriers continued to perform better on the back of an extended network and reduced operating expenditure."

SIA Cargo made an operating loss of S$11 million as freight rates remained under pressure from overcapacity in the global market, the company said.

Group revenue fell to S$3.65 billion from S$3.85 billion, while expenditure dropped to S$3.54 billion from S$3.72 billion and net profits were down 70 percent at $65 million.

"Excess capacity and aggressive pricing continue to persist in the market, exerting pressure on loads and yields," SIA said in a statement.

SIA also declared an interim dividend of 9 cents per share.

 

[johnny333]

SIA Q2 profits fell by 70%.

Obviously not enough angmos & Indians are flying with SIA.
This is what you get for alienating other customers with poor & discriminatory treatment.


http://www.todayonline.com/business/sias-q2-profit-plunges-70-amid-sluggish-global-economy

SIA’s Q2 profit plunges 70% amid sluggish global economy

SINGAPORE — Flag carrier Singapore Airlines on Thursday (Nov 3) reported net profit plunged 69.6 per cent in its fiscal second quarter from the corresponding period a year earlier, hurt by a sluggish global economy as well as lower dividends from long-term investments.

For the three months ended Sept 30, net profit fell to S$64.9 million from S$213.6 million a year earlier as revenue slipped 5.1 per cent to S$3.65 billion, SIA said in an afterhours filing with the Singapore Exchange. It reported a 15.5 per cent year-on-year fall in operating profit for the period to S$109 million, due to excess capacity and aggressive competition.

On top of the weaker operating results, returns from long-term investments during the period slumped by S$88 million mainly in the absence of a special dividend previously enjoyed, while medium-to-long-haul low-cost subsidiary Scoot suffered an impairment of S$21 million on its 777-200 aircraft and associated companies reported weaker results.

The flagship full-service parent airline SIA contributed S$79 million in operating profit for the three months to Sept 30, down from S$98 million in the year-ago period, while regional unit Silkair accounted for S$17 million, down from S$21 million previously. Scoot and short-haul budget unit Tiger Airways reported gains of S$5 million and S$3 million, respectively, turning around from losses of S$2 million and S$10 million in the previous corresponding period.

The freight business continued to languish amid a global capacity glut, with SIA Cargo reporting an operating loss of S$11 million, widening from the S$3 million loss previously. SIA Engineering reported an operating profit of S$25 million, narrowing from S$27 million previously.

“Most companies in the group recorded weaker operating results amid a sluggish global economy. However, Scoot and Tiger Airways registered improvements year-on-year as the low-cost carriers continued to perform better on the back of an extended network and reduced operating expenditure,” SIA said in its filing.

Looking ahead, SIA warned of more headwinds to its operations.

“The passenger airline business continues to be impacted by geopolitical uncertainty and weak global economic conditions. The outlook in most major economies remains tepid. Furthermore, excess capacity and aggressive pricing continue to persist in the market, exerting pressure on loads and yields,” it said.

“The outlook for the cargo business remains challenging as yields are expected to stay under pressure due to overcapacity in the air cargo industry. Efforts will continue to be focused on higher-yielding product segments to improve the overall traffic mix,” it added.

Fuel prices remain volatile given the uncertainty over how the proposed cut in oil production by the Organisation of Petroleum Exporting Countries would be implemented, it warned.yes

“For the second half of the financial year, the group has hedged 29.3 per cent of its jet fuel requirement in Singapore jet kerosene and 3 per cent in Brent at weighted average prices of US$68 and US$63 per barrel, respectively,” it said.

SIA proposed a 9 cents per share dividend for the period, down 1 cent from the year-ago period

Before the aftermarket announcement, SIA shares fell 0.2 per cent to S$10.11 each, in line with the 0.2 per cent loss in the benchmark Straits Times Index (STI) to 2,802.08. SIA shares have shed 9.7 per cent in the year to date, compared to the 2.8 per cent decline in the ST

 

[WujiBo]

Air China wins! Better pricing than SIA.

One peh kee costs us$100 million. Can't even buy one peh kee with profit.

 

[frenchbriefs]

looks like the end of days is coming to Singapore.....Lee Hsien Loong said Singapore's economy is not as bad as 2008 financial crisis where they had to administer "antibiotics"......iv never seen so much bad news come out of SG during the financial crisis either.every sinkie company is failing and shitting out its arse.

 

[johnny333]

They usually try to put a positive spin to the bad news, However with so many people at SPH being laid off I doubt people there are in any mood to be positive.

 

[kryonlight]

SIA 早死早好
Go join your father in hell!

 

[eatshitndie]

only temporary due to new (direct) routes and competition. hub and spoke model is dying. paid usd647+ for direct roundtrip from sfo to sin. shiok. but that price is promotional and will revert to around usd1k as united is also flying the same route with dreamliner. sq is on new longhaul airbust. they don't like dreamliner.

 

[red amoeba]

They are caught by the hype of the a380. Buy 15 n now suddenly they r white elephants. They now hedge on the ultra Long haul a350 which if trump wins will also render them useless.

Double whammy.

 

[ckmpd]

news.asiaone.com
Singapore Airlines Q2 profit hit by price wars

SINGAPORE - Singapore Airlines' reported a 15.5 percent fall in its second-quarter operating profit to S$109 million on Thursday, blaming "excess capacity and aggressive pricing".

The flagship full-service airline unit contributed S$79 million to the result for the three months ended Sept. 30, with SIA's Silkair regional airline unit and its low-cost subsidiaries Scoot and Tigerair reporting profits as well.

"Most companies in the Group recorded weaker operating results amid a sluggish global economy," SIA said in statement filed to the stock exchange.

"However...low-cost carriers continued to perform better on the back of an extended network and reduced operating expenditure."

SIA Cargo made an operating loss of S$11 million as freight rates remained under pressure from overcapacity in the global market, the company said.

Group revenue fell to S$3.65 billion from S$3.85 billion, while expenditure dropped to S$3.54 billion from S$3.72 billion and net profits were down 70 percent at $65 million.

"Excess capacity and aggressive pricing continue to persist in the market, exerting pressure on loads and yields," SIA said in a statement.

SIA also declared an interim dividend of 9 cents per share.

The full year result looks bleak

 

[Dark Knight]

Are we suppose to have another so called terminal 4 and 5 in Changi Airport?
Since they can forecast so many travelers will flying in and out of this small island, SIA must be getting some business out of it.

 

[Pinkieslut]

Are we suppose to have another so called terminal 4 and 5 in Changi Airport?
Since they can forecast so many travelers will flying in and out of this small island, SIA must be getting some business out of it.

They need to as another 5MIL FTs will be imported. But I guess they will only be flying budget airlines like Airasia.

 

[borom]

Everything collapsing but ministers salaries-thank you 70%

 

[dr.wailing]

news.asiaone.com
Singapore Airlines Q2 profit hit by price wars

SINGAPORE - Singapore Airlines' reported a 15.5 percent fall in its second-quarter operating profit to S$109 million on Thursday, blaming "excess capacity and aggressive pricing".

@ Pinkieslut

Your news accurate or not?

Singapore Airlines blamed "excess capacity and aggressive pricing" for the fall in profit?? How come SIA didn't blame incompetent management instead?

 

[ginfreely]

@ Pinkieslut

Your news accurate or not?

Singapore Airlines blamed "excess capacity and aggressive pricing" for the fall in profit?? How come SIA didn't blame incompetent management instead?

Yes incompetent management and very misogynistic with no woman in top management post.

 

[dr.wailing]

Yes incompetent management and very misogynistic with no woman in top management post.

Do you think putting Ho Jinx in charge will turn the company around?

 

[JohnTan]

Sinkies should do their patriotic duty and travel by SQ for their holiday or business trips instead of taking budget or foreign airlines.

 

[kryonlight]

Sinkies should do their patriotic duty and travel by SQ for their holiday or business trips instead of taking budget or foreign airlines.

But all I want is Peoples' Association Airlines. Can you change SQ logo to PA logo?

 

[Pinkieslut]

Yes incompetent management and very misogynistic with no woman in top management post.

Anyone who has worked with SIA as a vendor who know that it is a backward organisation internally.

You can ask any IT sales person and they will tell they SQ are still using very ancient mainframes for processing.

While many airlines like Cathay have gone fully digitally direct in their sales strategy (using their own ecommerce website to drive sales), SQ still relying on the old model of working in the traditional sales-agent model.

 

[ginfreely]

Do you think putting Ho Jinx in charge will turn the company around?

We need those type who have capabilities by themselves and not becos of marriage.

 

[ginfreely]

Anyone who has worked with SIA as a vendor who know that it is a backward organisation internally.

You can ask any IT sales person and they will tell they SQ are still using very ancient mainframes for processing.

While many airlines like Cathay have gone fully digitally direct in their sales strategy (using their own ecommerce website to drive sales), SQ still relying on the old model of working in the traditional sales-agent model.

Yes very backward and sexist culture starting with the way they treat stewardesses.