SIA cuts Q1 cargo loss to S$18 million

Singapore Airlines’ cargo division halved its first quarter loss to S$18 million in the financial year first quarter, after it was better able to match capacity with demand.
SIA Cargo recorded lower revenue in three-month period ended June 2014, despite a 0.9 per cent improvement in yield, as the air freight market “continued to be affected by excess capacity”.
The air cargo divisional result is a significant improvement on the S$40 million deficit seen in the like quarter of 2013. The division’s load factor was marginally lower this quarter, at 62.4 per cent, as load-tonne km fell 3.5 per cent on the back of a 3.4 per cent capacity reduction.
SIA Cargo operates a fleet of eight B747-400Fs after returning one freighter on expiry of its lease in May this year.
The passenger carrier earned a group operating profit of S$39 million in the first quarter of 2014-15 financial year, some S$43 million lower than last year, as group revenues fell 4.1 per cent to nearly S$3.7 billion.
In its outlook, SIA said that overcapacity in the freight market will continue to impact the cargo business, “notwithstanding a slow recovery in air freight demand”.
SIA Cargo will target “specific product segments and traffic lanes to boost performance”.

Share this story

Related Topics

Latest airlines news

Rosy outlook beckons for freighter conversions

By Greg Waldron, FlightGlobal

Freighter conversion suppliers expect a strong e-commerce market to support the switching of passenger jets to cargo use, although capacity…

Read More

Share this story

Magma Aviation benefits from demand for long-term freighter deals

By Damian Brett

Freighter operator Magma Aviation last year benefitted from demand for long-term contracts as companies looked to avoid space shortages by…

Read More

Share this story

Psi Air eyes Philippines-US flights

By Rebecca Jeffrey

Philippines-based cargo airline Psi Air has applied for a foreign air carrier permit and exemption from the US Department of…

Read More

Share this story