Singapore Airlines 2008 Annual Report Download - page 66

Download and view the complete annual report

Please find page 66 of the 2008 Singapore Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 178

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178

Singapore Airlines Annual Report 2007-08
64
FINANCIAL REVIEW
Performance of the Company (continued)
Expenditure (continued)
A฀breakdown฀of฀fuel฀cost฀is฀shown฀below:
2007-08 2006-07 Change
$ million $ million $ million
Fuel฀cost฀(before฀hedging)฀ 4,240฀ 3,787฀ +฀ 453
Fuel฀hedging฀(gain)/loss฀ (185)฀ 94฀ –฀ 279
Fuel฀cost฀(net)฀ 4,055฀ 3,881฀ +฀ 174
Expenditure฀on฀fuel฀(before฀hedging)฀was฀$453฀million฀higher฀because฀of:
$ million
17.5%฀increase฀in฀weighted฀average฀fuel฀price฀from฀200.95฀US¢/AG฀to฀236.16฀US¢/AG฀ +฀ 678
1.5%฀increase฀in฀volume฀uplifted฀from฀1,208.47฀M฀AG฀to฀1,226.72฀M฀AG฀ +฀ 58
6.2%฀weakening฀of฀USD฀against฀SGD฀from฀US$1=S$1.570฀to฀US$1=S$1.473฀ –฀ 283
฀ +฀ 453
Staff฀costs฀rose฀$156฀million฀mainly฀due฀to฀(i)฀payment฀of฀60th฀anniversary฀bonus,฀(ii)฀service฀increments,฀(iii)฀higher฀average฀
staff฀strength฀(+224)฀this฀year,฀and฀(iv)฀higher฀allowances฀for฀crew฀(such฀as฀meal฀and฀nightstop฀allowances)฀arising฀from฀an฀
increase฀in฀capacity฀of฀1.2฀per฀cent฀(in฀terms฀of฀available฀seat฀kilometres).
Depreciation฀charges฀increased฀$159฀million฀mainly฀due฀to฀(i)฀capitalisation฀of฀expenditure฀for฀heavy฀maintenance฀visits฀on฀
aircraft฀and฀engine฀overhauls,฀and฀(ii)฀progressive฀delivery฀of฀B777-300ER฀aircraft฀(commissioning฀of฀ve฀B777-300ER฀aircraft฀
during฀the฀year).฀The฀increase฀was฀partially฀offset฀by฀(i)฀full฀year’s฀impact฀of฀sale฀of฀four฀B747-400฀aircraft฀last฀year,฀and฀(ii)฀sale฀
of฀two฀B747-400฀aircraft฀during฀the฀year.
Sales฀costs฀was฀up฀$38฀million฀from฀the฀year฀before,฀mainly฀driven฀by฀increase฀in฀sales฀bookings฀and฀higher฀credit฀card฀
commissions฀from฀increase฀in฀internet฀sales.
Aircraft฀maintenance฀and฀overhaul฀costs฀rose฀$105฀million,฀with฀more฀component฀maintenance฀work฀carried฀out฀on฀the฀B777฀
aircraft฀eet.
Airport฀and฀overying฀charges฀increased฀$21฀million฀primarily฀attributable฀to฀increase฀in฀number฀of฀trips฀and฀higher฀rates฀due฀
to฀introduction฀of฀A380-800฀aircraft.฀The฀increase฀was฀partially฀mitigated฀by฀a฀weaker฀USD.
Other฀costs฀increased฀by฀$131฀million,฀largely฀due฀to฀higher฀foreign฀exchange฀hedging฀and฀revaluation฀loss฀and฀higher฀crew฀
expenses.