SIA Q2 net profit quadruples to S$209.7 million on stronger yields, lower Air India losses
However, H1 profit still falls on fuel costs
Singapore Airlines (SIA) reported a quadrupling of its net profit to S$209.7 million in the second quarter, a significant improvement from S$52.4 million in the same period last year. This surge in profit was attributed to stronger operating performance and a reduction in losses from its associated airline, Air India. Operating profit increased by 16.3 percent to S$463.7 million, with passenger yields growing by 12.2 percent and cargo yields rising by 22.3 percent.
Despite a 63.3 percent jump in fuel costs before hedging, gains from hedging measures of S$355 million helped mitigate the effect. For the half year, SIA's net profit declined by 43.9 percent to S$133.9 million, down from S$238.5 million a year earlier, primarily due to a weaker first quarter where operating profit fell by 73.8 percent.
The company declared an interim ordinary dividend of S$0.02 per share and an interim special dividend of S$0.05 per share, resulting in a total payout of S$0.07 per share, up from S$0.08 per share a year earlier. SIA's full-service carrier, operating under the Singapore Airlines brand, saw revenue rise by 16.1 percent to S$9.6 billion for the half year, while its operating profit fell by 31.7 percent to S$574 million.
The low-cost carrier segment under Scoot reported a 29.4 percent revenue growth to S$1.4 billion, with operating loss narrowing to S$24 million. SIA noted that while passenger demand remains strong, jet fuel prices are still high and continue to pressure costs. The airline plans to maintain disciplined cost management and invest strategically in its operations.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
