SINGAPORE: Singapore Airlines (SIA), the world's second-largest carrier by market value, reported better-than-expected second-quarter earnings, boosted by a strong recovery in passenger traffic, especially the premium segment.
The airline, 55 percent owned by Singapore state investor Temasek Holdings, has made a robust recovery in the past year, helped by strong rebound of business and premium travellers.
"Advance bookings for the coming months indicate that demand is holding up. This should support an increase of 5 percent in passenger capacity in the second half of the financial year. Yields are expected to be steady," SIA said in a statement on Tuesday, Nov 9.
Its passenger yields in the second quarter improved to 80.3 Singapore cents per passenger-kilometer from 79.6 percent in the year ago period.
SIA narrowly avoided its first annual loss in fiscal 2009-2010 ending April, although the airline industry was badly hit by the worst downturn in history in 2009.
In September, the International Air Transport Association (IATA) said it expected the industry to post a combined net profit of $8.9 billion, more than three times the previous forecast of $2.5 billion made in June, compared with an estimate of nearly $10 billion in losses in 2009.
SIA earned S$380.2 million ($295.9 million) in the quarter ended September, compared with a S$159 million loss a year ago.
The net profit was ahead of an average forecast of S$341 million from three analysts surveyed by Reuters, and the highest since the third quarter of fiscal 2009/10 when the airline booked a net profit of S$404 million.
SIA also declared an interim dividend of 20 cents per share, amounting to $239.3 million, for the half-year ended 30 September 2010. It did not pay interim dividend last financial year when its was suffering a net loss in the first half.
The airline, which ranks after Air China in terms of market capitalisation, competes with Cathay Pacific and some Middle Eastern players such as Emirates.
Singapore Airlines shares have gained 9.2 percent since the start of the year, underperforming the around 14 percent rise in the benchmark Singapore index. - Reuters
The airline, 55 percent owned by Singapore state investor Temasek Holdings, has made a robust recovery in the past year, helped by strong rebound of business and premium travellers.
"Advance bookings for the coming months indicate that demand is holding up. This should support an increase of 5 percent in passenger capacity in the second half of the financial year. Yields are expected to be steady," SIA said in a statement on Tuesday, Nov 9.
Its passenger yields in the second quarter improved to 80.3 Singapore cents per passenger-kilometer from 79.6 percent in the year ago period.
SIA narrowly avoided its first annual loss in fiscal 2009-2010 ending April, although the airline industry was badly hit by the worst downturn in history in 2009.
In September, the International Air Transport Association (IATA) said it expected the industry to post a combined net profit of $8.9 billion, more than three times the previous forecast of $2.5 billion made in June, compared with an estimate of nearly $10 billion in losses in 2009.
SIA earned S$380.2 million ($295.9 million) in the quarter ended September, compared with a S$159 million loss a year ago.
The net profit was ahead of an average forecast of S$341 million from three analysts surveyed by Reuters, and the highest since the third quarter of fiscal 2009/10 when the airline booked a net profit of S$404 million.
SIA also declared an interim dividend of 20 cents per share, amounting to $239.3 million, for the half-year ended 30 September 2010. It did not pay interim dividend last financial year when its was suffering a net loss in the first half.
The airline, which ranks after Air China in terms of market capitalisation, competes with Cathay Pacific and some Middle Eastern players such as Emirates.
Singapore Airlines shares have gained 9.2 percent since the start of the year, underperforming the around 14 percent rise in the benchmark Singapore index. - Reuters
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