Singapore Airlines 2006 Annual Report Download - page 52

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50
Singapore Airlines Annual Report 05/06
Performance of the Company (continued)
Revenue
The Company’s revenue increased 11.3 per cent to $10,303 million as follows:
2005-06 2004-05
$ million $ million % Change
Passenger revenue 8,021.9 7,664.9 + 4.7
Excess baggage revenue 22.8 24.8 – 8.1
Non-scheduled services 11.6 10.5 + 10.5
Bellyhold revenue from SIA Cargo 1,130.8 919.1 + 23.0
Direct operating revenue 9,187.1 8,619.3 + 6.6
Indirect operating revenue 1,115.7 640.8 + 74.1
Total operating revenue 10,302.8 9,260.1 + 11.3
The increase in passenger revenue was the result of:
$ million $ million
6.6% increase in passenger traffic:
4.6% increase in seat capacity + 350.2
1.5% points increase in passenger load factor + 152.2 + 502.4
2.0% decrease in passenger yield (excluding fuel surcharge):
Change in passenger mix + 154.9
Stronger SGD – 46.9
Lower local currency yields – 253.4 – 145.4
Increase in revenue + 357.0
SIA’s bellyhold revenue increased 23.0 per cent to $1,131 million due to higher net bellyhold capacity (+7.1%) because of
increased passenger operations and recovery of higher fuel cost from SIA Cargo.
Indirect operating revenue increased 74.1 per cent to $1,116 million. This was mainly due to higher fuel surcharge, higher
collection of insurance and security charges resulting from more passengers carried, partially offset by lower income from lease
of aircraft.
The sensitivity of passenger revenue to a one percentage point change in passenger load factor and a one percentage change in
passenger yield is as follows:
$ million
1.0% point change in passenger load factor, if yield and seat capacity remain constant 106
1.0% change in passenger yield, if passenger traffic remains constant 80
FINANCIAL REVIEW
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
$ Million
$ Million
2001-02 2002-03 2003-04 2004-05 2005-06
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Passenger Revenue