The Singapore Airlines Group (SIA) reported a S$58 million (US$41.7 million) or 8.5 per cent decline in operating profit to S$623 million in FY2016-17 compared with the previous year, with full-year profit felling by 55.2 per cent due in part to the S$138 million net loss in the fourth quarter.
Group revenue fell 2.4 per cent to S$14.9 billion and expenses down 2.1 per cent to S$14.3 billion, with passenger flown revenue declining S$382 million (-3.2 per cent) despite traffic growth (+2.6 per cent) as yields continued to come under intense pressure.
Operating profit for the parent carrier Singapore Airlines tumbled S$99 million (-20.4 per cent) after total revenue fell S$592 million, but its decrease was offset by gains made by other airlines in the group.
SilkAir’s operating performance improved S$10 million (+11 per cent), while Budget Aviation Holdings, comprising Scoot and Tigerair, reported an operating profit of S$67 million, a S$25 million improvement.
With two Airbus A350-900s added to its fleet in 1Q2017, Singapore Airlines expects to take delivery of 10 A350-900s and three A380-800s during the FY2017-18 and bring its total operating fleet of the carrier to 109 aircraft.
Meanwhile, the airline has signed a letter of intent with Boeing to purchase 20 777-9s and 19 787-10s, plus six options for each aircraft type. The 777-9s are due for delivery from FY2021-22 and the 787-10s for delivery from FY2020-21.
