Full year profit turnaround for SIA Cargo
17 / 05 / 2018
Singapore Airlines’ (SIA) cargo division reported an operating profit of S$148.1m in the 2017/18 financial year, up from S$3m in the prior year which was impacted by a S$132m provision for competition-related matters.
Cargo revenue in the 12 months to the end of March 2018 grew S$264m to around S$2.2bn as cargo yield and freight carriage improved 8.9% and 5.3% respectively, “on the back of strong air cargo demand,” reported the carrier in its annual results statement.
“Expenditure was up S$119m, partly due to higher handling costs on increased freight carriage, staff costs, and aircraft maintenance and overhaul costs. Cargo load factor rose by 2.1 percentage points to 65.3%.”
The fourth quarter of the 2017/18 financial year saw SIA Cargo report an operating profit of S$28m, a S$33m year-on-year improvement from a S$5m loss.
The fourth quarter, said the carrier, saw revenues rise S$55m as freight carriage grew 4.6% and cargo yield improved 8.5%, while "expenditure increased by S$22m, due in part to higher depreciation.”
SIA Cargo, which was re-integrated into the parent company from April this year, will “continue to pursue charter opportunities and deploy capacity to match demand”.
Currently, SIA Cargo’s freighter network covers 19 cities in 13 countries and territories, including Singapore.
In its outlook, the airline said: “The overall demand outlook for cargo remains moderately positive, but is subject to geopolitical uncertainties which may have implications on global trade.”
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