Singapore Airlines sees cargo revenues rise in Q1 despite traffic decline
26 / 07 / 2018
Singapore Airlines saw its cargo revenues jump during its financial first quarter, despite a drop in demand.
Between April and June, the Asian airline saw cargo revenues increase by S$30m, or 6%, on the back of a yield increase of 9%, a reflection of the overall market trend.
The improvement in yields came despite its cargo volumes decreasing by 3.5% year on year to 1.7bn tonne kms and a reduction in its freight load factor to 61.4% against 65.7% last year.
The airline’s freighter business operates using seven Boeing 747-400Fs and covers 19 cities and territories.
Looking ahead, the airline said it would continue to pursue charter opportunities and deploy capacity to match demand.
“Cargo demand in the near term is steady despite concerns over global trade tensions, the escalation of which could potentially have a longer-term impact on air cargo demand,” Singapore Airlines said.
The overall company saw revenues for the period decline by 0.6% year on year to $3.8bn and profit attributable to the owner was down 58.7% on last year to S$139.6m.
The company incurred one-off expenses of $175m due to adjustments to its frequent flyer programme, changes in breakage rates, and compensation for changes in aircraft delivery slots, while jet-fuel prices also increased during the period.
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