Singapore Airlines

[winston]

Agree. Quite a few "experts" hedged themselves at very high oil prices.

The only one that consistently said that they will not hedge was Air Asia. And they got it right this round ...

[millionairemind]

Oct 15, 2009
SIA Sept load hits 70.3%

SINGAPORE Airlines, the world's largest airline by market value, said on Thursday it filled 70.3 per cent of the space available on its planes for passengers and cargo in September.

The figure was higher compared to August's 68.2 per cent.

Singapore Airlines said passenger load for September was at 80.9 per cent. -- REUTERS

[millionairemind]

November 10, 2009, 5.34 pm (Singapore time)

SIA remains in the red for Q2

By ANGELA TAN

Singapore Airlines on Tuesday reported the airline remains in the red for the fiscal second quarter.

Net loss for the three months was S$158.8 million, compared to a net profit of S$323.8 million a year ago. However, this was an improvement of $148 million from the first quarter's net loss of $307 million.

Revenue fell to S$3.08 billion, from S$4.38 billion previously.

The company had earlier warned in July it could post a full-year loss if tough conditions last.

[Musicwhiz]

The airline industry is not what it used to be. The fundamentals of the industry have changed irreversibly ever since budget airlines entered the market, and changed the competitive landscape.

This is the first time that SIA is reporting 2 straight quarters of losses since listing in 1985.

My opinion is that airlines are too regulated to be able to generate good profits and cash flow for its shareholders; and the capex is huge because of the need to overhaul aircraft now and then; as well as buy new aircraft.

[winston]

Wonder whether they have written down their investments in the other airlines ? Do they have to MTM it ?

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J.P.Morgan raises Singapore Air target price to S$16

SINGAPORE, Nov 11 (Reuters) - J.P. Morgan raised the target price for Singapore Airlines , the world's largest airline by market value, to S$16 ($11.53) from S$14, after the airlines reported its second-quarter results.

J.P. Morgan analyst Corrine Png, who maintained her "overweight" rating on the stock, said in a research report on Wednesday that the results were stronger than expected.

[millionairemind]

December 15, 2009, 5.22 pm (Singapore time)

SIA's passenger load factor in Nov at 81.9%, up 3.8 pts

By ANGELA TAN

Singapore Airlines said on Tuesday that it filled 81.9 per cent of the space available on its planes for passengers, in November, up 3.8 points compared to 78.1 per cent a year ago.

However, the number of passengers carried decreased 7.3 per cent over the same month last year to 1.4 million.

In November, the airline's systemwide passenger carriage (measured in revenue passenger kilometres) declined year-on-year by 5.1 per cent on the back of a larger reduction in capacity (measured in available seat kilometres) of 9.4 per cent.

The year-on-year reduction in capacity followed the planned reduction in frequencies, termination of services to Amritsar and Vancouver (via Incheon), and the transfer of Hyderabad operations to SilkAir.

Overall cargo carriage (measured in freight tonne kilometres) fell by 3.2 per cent, less than the reduction in systemwide cargo capacity of 12.1 per cent.

This led to an improvement in the overall load factor of 6.1 percentage points to 66.4 per cent.

Cargo load factor improved for all regions except for South West Pacific. The improvement in CLFs was attributable to the tight capacity in the market as well as a general improvement in trading conditions due to the pre-festive peak.

[millionairemind]

Published January 16, 2010

SIA lifts Dec load factor with capacity cut
It reports 84.3% load factor though the number of passengers carried slips 4.7% to 1.53 million

By VEN SREENIVASAN

SINGAPORE Airlines filled a record proportion of available seats on its planes in December last year despite flying fewer passengers, thanks to sharp cuts in capacity.

The airline reported an 84.3 per cent passenger load factor (PLF) - against 79.9 a year ago - although the number of passengers carried decreased 4.7 per cent over the same month last year to 1.53 million. The load factor reflected a passenger carriage (measured in revenue passenger kilometres) decline of 4.3 per cent which was more than matched by a 9.2 per cent cut in seat capacity (measured in available seat kilometres).

The airline cut some 11 per cent of capacity during the current financial year. Measures have included termination of services to Amritsar and Vancouver (via Incheon), and the transfer of Hyderabad and Penang operations to SilkAir. It has also reduced services to several other destinations.

'Passenger demand continued to reflect the recovery trend in the global economy,' the airline said in a statement. 'Most regions recorded improvements in PLFs over the same month last year, mainly as a result of robust year-end travel demand during the holiday season.'

Two regions which enjoyed the highest load factors were Southwest Pacific, which includes Australia, where it filled 89.7 per cent of seats; and East Asia, which had a passenger load factor of 84.8 per cent.

On the cargo side, the load factor was 63.4 per cent (compared to 55.4 per cent in December 2008) reflecting a 7.9 per cent cut in systemwide cargo capacity matched against a 5.7 per cent improvement in cargo traffic (measured in freight tonne kilometres).

'Consequently, overall load factor improved by 8.2 percentage points,' SIA said. 'Cargo load factor (CLF) improved for all regions, except South West Pacific. Tighter capacity in the market coupled with stronger demand during the pre-Christmas peak contributed to the improvement in CLFs across most regions.'

Overall load factor was 71.7 per cent, compared with 65.8 a year earlier.

[millionairemind]

Home > Breaking News > Singapore > Story
Feb 2, 2010
SIA Q3 net profit up 19.7%

SINGAPORE Airlines (SIA) returned to profit in the three months to the end of December following losses in the two preceding quarters.

It posted a 19.7 per cent rise in quarterly profit on Tuesday on a recovery in cargo volumes and improving passenger demand, but the number was short of expectations.

The company, which is 55 per cent-owned by state investor Temasek Holdings, reported a net profit of $403.7 million in its third quarter compared to a net profit of $337.2 million a year ago, rebounding from two quarters of losses.

Analysts had forecast an average net profit of $448 million for SIA, which would have been its best quarterly profit since March 2008.

The airline industry is recovering from one its worst downturns last year, but growth in the more profitable business class segment, where SIA thrives, is slow and could take time to capture pre-crisis growth.

SIA shares are down 7.2 per cent since the start of the year, compared to an 8.3 per cent drop in shares of Hong Kong-based rival Cathay Pacific and a 5.5 per cent drop in the broader Singapore market.

The stock closed 1.4 per cent lower on Tuesday ahead of the results, giving Singapore Airlines a market capitalisation of about $11.7 billion, ranking it behind Air China. -- AFP, REUTERS

[millionairemind]

Published March 16, 2010

Better Feb for SIA with passenger, cargo loads up

By VEN SREENIVASAN

RISING demand and reduced capacity helped Singapore Airlines (SIA) fill more seats in February.

Bon voyage! SIA enjoyed a higher passenger load factor in all regions in February

The airline's passenger load factor rose 10.2 percentage points to 79.9 per cent, from 69.7 per cent a year earlier.

This was due to a 7.1 per cent increase in the number of passengers carried to 1.3 million. System- wide passenger carriage (measured in revenue passenger kilometres) increased 9.9 per cent.

Significantly, this was the first year-on-year improvement in passengers carried and system-wide passenger carriage since October 2008.

This rise in load factor was also driven by a 4.2 per cent cut in capacity, measured in available seat kilometres.

SIA said the cut arose from a planned reduction in frequencies, the termination of services to Vancouver (via Incheon) and the transfer of Hyderabad and Penang operations to SilkAir.

All regions enjoyed a higher passenger load factor, which was also helped by Chinese New Year falling in February this year and the 2010 Singapore Airshow.

The Southwest Pacific routes had the highest load factor at 87.5 per cent. But the strongest recovery was in services to the Americas (76.8 per cent, versus 63.9 per cent last year), and East Asia (78.5 per cent, versus 67.9 per cent). The load factor on the European routes was 81.2 per cent, up 9.8 percentage points year-on- year.

The cargo load factor improved to 65.6 per cent, from 56.7 per cent in March 2008, thanks to a 3.4 per cent rise in cargo traffic growth (measured in freight-tonne kilometres) and a 10.6 per cent cut in capacity.

The strongest growth in the cargo load factor was in services to Europe, with 74 per cent of space filled, versus 57.7 per cent a year earlier.

'Tight capacity management and general improvement in the business environment continued to contribute to the improvement in cargo load factors across most regions,' SIA said in a statement.

Separately, SIA said it has renewed its engineering services agreement with listed subsidiary SIA Engineering Co (SIAEC) for another three years, with a two-year extension option.

Under the $2.2 billion deal, SIAEC will provide engineering and maintenance support for SIA's entire fleet of about 100 planes. Besides maintenance, repair and overhaul (MRO), the contract also includes fleet management support services.

As the deal is a renewal, it will have no material impact on SIAEC's financial performance in the 2010-11 financial year.

[millionairemind]

Published April 16, 2010

SIA fills 80.8% of available seats

Despite strong pick-up in traffic in March, overall yield still under pressure

By VEN SREENIVASAN

SINGAPORE Airlines filled 80.8 per cent of available seats in March, up a strong 11.4 percentage points from a year ago.

Demand recovery: The number of passengers carried by SIA in March increased 9.5 per cent to 1.4 million

During the month, SIA's system-wide passenger carriage, measured in revenue passenger kilometres, rose 13.9 per cent year on year, as the number of passengers carried increased 9.5 per cent to 1.4 million.

Also boosting the load factor was a 2.2 per cent capacity cut during the month due to frequency reductions, the termination of services to Vancouver via Incheon and to Pakistan, and the transfer of Hyderabad and Penang operations to SilkAir.

All regions recorded a significant improvement in passenger load factors during the month, with Europe and the Americas leading the pack.

'The shift in the Easter holiday from April in 2009 to March this year resulted in increased travel demand during this period,' SIA said.

It did not give figures for premium passenger traffic, which is said to account for 40 per cent of income. But spokesman Nick Ionides said this is recovering. 'Business class demand, in particular, is coming back very strongly and we are very pleased with that,' he said.

In fact, demand recovery has been good enough for SIA to reinstate its all-business class daily non-stop flights to Newark. However, its Singapore-Los Angeles services remain on a reduced frequency of five times a week.

Mr Ionides said that despite the strong pick-up in traffic, overall yield remains under pressure.

On the cargo side, a combination of a 4.2 per cent cut in system-wide capacity and a 12 per cent rise in traffic, measured in freight tonne kilometres, resulted in a 9.9 percentage point rise in the load factor to 68.4 per cent.

The cargo load factor improved for all regions except south-west Pacific. SIA said the improvement was due mainly to 'strategic management of freight capacity to match market demand, as well as the improving operating environment'.

SIA's overall load factor improved 10.3 percentage points to 72.9 per cent.

Separately, SIA said yesterday only two of its flights - one out of Heathrow and the other out of Copenhagen - were rescheduled after airports across northern Europe shut because of ash from a volcanic eruption in Iceland. SIA has three daily flights to Heathrow.

'Thank goodness we are not a European airline,' Mr Ionides said. 'But the situation is quite fluid at the moment.'