Singapore Airlines 2010 Annual Report Download - page 66

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SINGAPORE AIRLINES
64
financial review
Performance of the Company (continued)
Expenditure (continued)
A breakdown of fuel cost is shown below:
2009-10 2008-09 Change
$ million $ million $ million
Fuel cost (before hedging) 3,077 5,043 - 1,966
Fuel hedging loss 460 306 + 154
3,537 5,349 - 1,812
Expenditure of fuel before hedging was $1,966 lower because of:
$ million
33.0% decrease in weighted average fuel price from 118.6 USD/BBL to 79.5 USD/BBL - 1,507
9.4% decrease in volume uplifted from 30.0 M BBL to 27.2 M BBL - 478
0.6% strengthening of USD against SGD from US$1=S$1.416 to US$1=S$1.425 + 19
- 1,966
Depreciation charges increased $26 million mainly due to progressive delivery of new aircraft. During the year, four A380
aircraft were commissioned.
Staff costs were $151 million lower, mainly attributable to wage cuts and voluntary no-pay leave, lower crew allowances
and provision for profit-sharing bonus.
Handling charges was $40 million lower, attributable to decrease in number of handlings, partially offset by increase in
rates from new aircraft type joining the fleet.
Inflight meals and other passenger costs fell $38 million due mainly to decrease in number of passengers uplifted.
Airport and overflying charges was $47 million lower, largely due to decrease in number of trips.
Sales cost decreased $125 million, as commissions and incentives reduced.
Rentals on leased aircraft increased $69 million, primarily attributable to lease of additional 7 A330-300 aircraft, partially
offset by the return of 3 B747-400 aircraft on expiry of lease.
Other costs were $91 million higher, due mainly to foreign exchange revaluation and hedging loss this year (against gain
last year).