SIA sees 7.2% air cargo revenue decline in Q1
29 / 07 / 2015
Singapore Airlines Group saw cargo revenue decline 7.2% in the first quarter of the current financial year (April-June 2015), despite a slight increase in freight carried, due to a 7.6% fall in yield.
SIA Cargo recorded a first quarter loss of S$9m, compared with a S$18m deficit in the like three-month period in the last financial year.
The 7.6% reduction in cargo yield was” more than offset by the fall in expenditure, mainly from lower fuel costs” said the company.
“SIA Cargo’s freight carriage (in load tonne-km) was marginally higher by 0.4%, albeit lagging the 2.6% increase in capacity. Load factor fell 1.3 percentage points to 61.1%.”
The size of SIA Cargo’s fleet, comprising eight 747-400 freighters, remained unchanged in the first quarter.
In its outlook, SIA said: "Air cargo yields are unlikely to see an upturn as industry overcapacity persists. SIA Cargo will continue to manage capacity carefully, while actively pursuing opportunities in special product segments to stimulate yields."