Singapore Airlines on a high in Q2 but worried of over-capacity

Singapore Airlines and low-cost subsidiary Scoot have reported their highest half-year revenues and profits, thanks to the rebound of traffic to North Asia. The HY1 operating profit of $1.554 billion is up 25.9 percent year on year. Demand remains strong, but Singapore Airlines is concerned about the effects of over-capacity in the region and will adjust capacity when needed.

Singapore Airlines Group reported a net profit for March-September of $1.441 billion, up 55.4 percent from last year’s $927 million. This included the effects of net interest income versus net finance charges last year (+$222 million) and share of profits versus share of losses of associated companies last year (+$87 million), partially offset by a higher tax expense (-$118 million).

Total revenues were up 8.9 percent to $9.162 billion from $8.417 billion, while expenses increased by 5.9 percent to $7.609 billion. Despite higher volumes, fuel costs were actually down by 15.3 percent to $2.283 billion, including a $244 million gain from hedging. Non-fuel costs were up 18.7 percent to $5.326 billion. The operating profit of $1.554 billion compares to $1.234 billion last year.