Singapore Airlines 2006 Annual Report Download - page 56

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54
Singapore Airlines Annual Report 05/06
Performance of the Company (continued)
Expenditure (continued)
Rentals on leased aircraft decreased $11 million mainly because of (i) completion of the leases for three B747-400 aircraft in the
previous year; (ii) extension of lease at lower rates for three B747-400 aircraft; (iii) net decrease in rental for two B747-400 aircraft
as structured under the lease agreements; and (iv) a weaker US Dollar (USD) against Singapore Dollar (SGD). The decrease was
partially offset by the full year’s impact of sale and leaseback of one B777-300 and two B777-200ER aircraft last year.
Communication and information technology costs decreased by $6 million due to lower software and equipment maintenance cost
and hire charges for computer equipment, partially offset by higher information technology professional and contract fees.
Other costs increased by $84 million. This was largely due to higher foreign exchange hedging and revaluation loss.
Fuel Productivity and Sensitivity Analysis
Fuel productivity as measured by load tonne-km per American gallon (ltk/AG) increased by 1.8 per cent over the previous year to
9.52 ltk/AG as a result of increased network efficiency as reflected by higher load factors.
A change in fuel productivity (passenger aircraft) of 1.0 per cent would impact the Company’s annual fuel costs by about
$34 million, before accounting for changes in fuel price, USD exchange rate and flying operations.
A change in price of one US cent per American gallon affects the Company’s annual fuel costs by about $19 million, before
accounting for USD exchange rate movements, and changes in volume of fuel consumed.
FINANCIAL REVIEW
Fuel Productivity of Passenger Fleet
LTK/AG
LTK/AG
2001-02 2002-03 2003-04 2004-05 2005-06
10.0
9.5
9.0
8.5
8.0
10.0
9.5
9.0
8.5
8.0