Singapore Airlines

[LenaHuat]

14,000 of SIA staff is asked to take voluntary leave for up to the next 2 years

[winston]

SINGAPORE AIRLINES - Macquarie Research slashed its price target for Singapore Airlines to S$8.12 from S$10.07 and kept its "underperform" rating, citing the deteriorating demand for air travel.

Source: Reuters

[millionairemind]

May 14, 2009, 5.26 pm (Singapore time)

Update: SIA Q4 net profit slumps 92%

SINGAPORE - Singapore Airlines posted on Thursday a 92 per cent slump in its fourth quarter net profit, dragged down by hedging losses and slowing demand.

SIA, which ranks ahead of Air China, said January-March net profit dropped to S$41.9 million (US$28.6 million) from S$527.5 million a year ago, missing a forecast of S$176 million according to analysts polled by Reuters Estimates.
Its full year net profit was S$1.06 billion, compared to S$2.05 billion in 2008 and analysts' forecasts of S$1.1 billion.

SIA has seen falling passenger and cargo demand this year as the global economic slowdown hurt business and leisure travel, forcing it to cut flights from the city-state to various destinations.

Its shares have dropped 11.2 per cent in January-March period, underperforming a 3.5 per cent fall in the broader index . -- REUTERS

[winston]

SINGAPORE AIRLINES - Singapore Airlines said on Monday it filled 62.8 percent of the space available on its planes for passengers and cargo in May.

The figure was lower compared to April's 63.7 percent.

[millionairemind]

July 15, 2009, 6.47 pm (Singapore time)

SIA June load factor at 67.6%

SINGAPORE - Singapore Airlines said on Wednesday it filled 67.6 per cent of the space available on its planes for passengers and cargo in June.

The figure was higher compared to May's 62.8 per cent.

Singapore Airlines said passenger load for June was at 75.7 per cent. -- REUTERS

[millionairemind]

ublished July 31, 2009

SIA posts first quarterly loss in six years

By VEN SREENIVASAN

FACED with the worst operating conditions since 2003, Singapore Airlines has announced its first set of quarterly losses in six years and warned that it could post its first full-year loss since it was formed in 1972.
The combination of the global economic downturn, the outbreak of Influenza A (H1N1) and fuel hedging resulted in a loss of $307 million for the first quarter ended June 30. It posted a group operating loss of $319 million for the first quarter, against an operating profit of $343 million last year.

The airline company alone (excluding associates and subsidiaries) lost $271 million during the quarter. SilkAir lost $3 million (down from a profit of $10 million previously), while long-suffering SIA Cargo bled to the tune of $104 million (after a profit of $5 million in April-June 2008).

This is the airline's first quarterly loss since April-June 2003, when it posted a net loss of $312 million and an operating loss of $377 million, during the Sars pandemic.

Group revenue fell 30 per cent to $2.87 billion, down $1.26 billion from $4.13 billion in the April-June 2008 quarter as carriage on both the passenger and cargo sides declined. Yields headed south as well, reflecting increased competition and promotional fare activity.

Group expenditure at $3.19 billion was $598 million or 15.8 per cent lower than the same quarter last year. The drop in the price of jet fuel provided relief of $1.14 billion, partially offset by fuel hedging losses of $287 million (compared to hedging gains of $349 million).

The operating statistics showed that SIA filled 20 per cent fewer seats during the quarter. The company has initiated an 11 per cent cut in capacity which has yet to be put into effect.

Meanwhile, under the terms of a flexible wage deal for airline staff, its 12,000 bargainable employees (including pilots and cabin crew) will see their monthly pay packets slashed by 10 per cent from August. Chief executive Chew Choon Seng will take a 20 per cent cut.

The pay cuts will provide estimated savings of $60 million for the current financial year, the airline said.

'If conditions continue, the group expects to make a loss for the full year,' the airline said in a statement.

If so, this would be the first ever full-year loss for the airline since its inception in 1972.

And analysts are not upbeat on the prospects for the rest of the year.

'They really need to get their load factors up to above breakeven,' said Vincent Ng of S&P Asian Equity Research. 'The question is whether they can, under the current operating conditions.'

Indeed, SIA's passenger breakeven was 84.3 per cent, way above its April-June numbers of 66.9-75.7 per cent. On the cargo side, its breakeven load factor of 77.6 per cent is almost a full 20 percentage points above the 58-61 per cent range during the quarter.

Meanwhile, the median estimate in a Bloomberg survey of 13 analysts suggests SIA could post a full- year loss of $625 million for the year ending March 2010.

The stock rose 18 cents to close at $13.52 yesterday, before the earnings numbers were released.

Source: Business Times Singapore

[millionairemind]

August 17, 2009, 6.41 pm (Singapore time)

SIA July load factor at 69.7%

SINGAPORE - Singapore Airlines, the world's second biggest airline by market value, said on Monday it filled 69.7 per cent of the space available on its planes for passengers and cargo in July.

The figure was higher compared to June's 67.6 per cent.

Singapore Airlines said passenger load for July was at 79.7 per cent. -- REUTERS

[winston]

RESEARCHALERT-Macquarie lifts SIA to neutral, ups target price

SINGAPORE, Aug 31 (Reuters) - Macquarie raise on Monday its recommendation on Singapore Airlines to "neutral" from "underperform", citing a possible recovery in the airline's operating performance over the next 12 months.

The brokerage house also raised its target price for the second largest airline by market value to S$14.40 ($9.99) from S$11.20 previously.

[winston]

This is assuming that Swine Flu does not become a problem this winter ..

RESEARCH ALERT-Morgan Stanley upgrades Singapore Airlines

SINGAPORE, Oct 9 (Reuters) - Morgan Stanley upgraded its recommendation on Singapore Airlines to "overweight" from "underweight", citing a possible global economic recovery in 2010 which would boost premium travel.

Morgan Stanley also said in a research report on Friday that it raised its target price on the world's biggest airline by market value to S$16 ($11.53) from S$10.25 previously.

Source: Reuters

[kennynah]

although it's been more than 1 year since light crude oil dropped from $150pbl.... it wont surprise me that SIA "hedged" themselves into some expensive futures contracts ... and hopefully, by now, their obligation has expired...