Singapore Airlines 2005 Annual Report Download - page 53

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Financial Review
SIA Annual Report 04/05 51
CC
฀MOD: CN1323
M Y
C K
While every effort has been taken to carry out instruction to customers satisfaction
NO RESPONSIBILITY liablilty will be accepted for errors
CUSTOMERS ARE THEREFOREURGED TO CHECK THOROUGHLY BEFORE
AUTHORISING PRINTRUNS
DALIM
1 2 3 4 5 6 7 8 9 10 OK TS
CC196777 DLMAC13 10.06.2005 150#
1
Performance of the Company (continued)
Expenditure
The Company’s expenditure for 2004-05 increased 21.3 per cent from a year ago, to $8,537 million as follows:
2004-05 2003-04 Change
$ million % $ million % $ million %
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Fuel costs 2,148.1 25.2 1,415.7 20.1 + 732.4 + 51.7
Staff costs 1,526.4 17.9 1,226.5 17.4 + 299.9 + 24.5
Depreciation 903.5 10.6 928.2 13.2 – 24.7 – 2.7
Aircraft maintenance and
overhaul costs 733.4 8.6 760.2 10.8 – 26.8 – 3.5
Handling charges 721.4 8.5 627.7 8.9 + 93.7 + 14.9
Sales costs R1 669.1 7.8 473.1 6.7 + 196.0 + 41.4
Inflight meals and other
passenger costs 548.0 6.4 453.0 6.5 + 95.0 + 21.0
Airport and overflying charges 506.3 5.9 408.9 5.8 + 97.4 + 23.8
Rentals on leased aircraft 307.5 3.6 310.9 4.4 – 3.4 – 1.1
Communication and information
technology costs R2 120.8 1.4 124.2 1.8 – 3.4 – 2.7
Other costs R3 352.2 4.1 309.0 4.4 + 43.2 + 14.0
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
8,536.7 100.0 7,037.4 100.0 + 1,499.3 + 21.3
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
R1 Sales costs included commissions and incentives payable, frequent flyer programme costs, computer reservation system booking fees, advertising expenses
and other sales costs.
R2 Communication and information technology costs were for data transmission and contract service fees, hire of computer equipment, maintenance/rental of
software, and information technology contract and professional fees.
R3 Other costs mainly comprised crew expenses, company accommodation costs, exchange loss, comprehensive aviation insurance costs, airport lounge
expenses, non-information technology contract and professional fees, expenses incurred to mount non-scheduled services, aircraft licence fees and
recoveries.
A breakdown of fuel cost is shown below:
2004-05 2003-04 Change
$ million $ million $ million
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Fuel cost (before hedging) 2,451 1,463 + 988
Fuel hedging (gain)/loss (303) (47) – 256
–––––––––––––––––––––––––––––––––––––––––––––––––––––
Fuel cost (net) 2,148 1,416 + 732
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Expenditure on fuel was $732 million higher because of:
$ million
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
19.8% increase in volume uplifted from 938.29 M AG to 1,124.27 M AG + 290
44.0% increase in weighted average fuel price from 90.25 US¢/AG to 129.95 US¢/AG + 771
2.9% weakening of USD against SGD from US$1=S$1.728 to US$1=S$1.678 – 73
–––––––––––––––––
+ 988
Higher hedging gain – 256
–––––––––––––––––
+ 732
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––