Singapore Airlines 2007 Annual Report Download - page 49

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Singapore Airlines 47 Annual Report 2006-07
Performance of the Group
Group Earnings
The Group achieved an operating profi t of $1,314 million for the fi nancial year ended 31 March 2007. This was $101 million
(+8.3 per cent) more than the previous fi nancial year, credited to strong performance by the Company, which turned in a
record operating profi t of $1,027 million, up by $376 million (+57.8 per cent).
Robust passenger demand produced record revenue of $14,494 million for the Group, up $1,153 million (+8.6 per cent)
on the year before. The number of passengers carried for the full year at 18.346 million was the highest achieved in the
Company’s history. Underpinned by the strong growth in carriage for passenger operations, passenger yield improved
2.8 per cent.
However, Group expenditure also increased, rising $1,052 million (+8.7 per cent) to $13,180 million, led by higher fuel cost.
Expenditure on fuel was up $676 million (+16.0 per cent) to $4,917 million, mainly due to increase in the price of jet fuel.
Fuel accounted for 37.3 per cent of the Group expenditure, up 2.3 percentage points from a year ago. Despite higher fuel
prices, the Group was able to curb the rise in expenditure through collective efforts towards improved cost management,
effi ciency and productivity. Excluding fuel, the increase in Group expenditure was at a slower rate than revenue; higher by
$376 million (+4.8 per cent).
For the fi nancial year, the Group posted a profi t attributable to equity holders of the Company of $2,129 million, up
$888 million (+71.6 per cent) from last year. This was driven by exceptional gains of $421 million (sale of SIA Building and
sale of investment in Singapore Aircraft Leasing Enterprise), tax write-back of $247 million due to reduction in statutory tax
rate from 20 per cent to 18 per cent and higher operating profi t.
The Group’s earnings per share (basic) increased 69.7 per cent to 172.6 cents, in line with the growth in profi t attributable to
equity holders of the Company of 71.6 per cent.
FINANCIAL REVIEW