Singapore Airlines 2011 Annual Report Download - page 63

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ANNUAL REPORT 2010/2011 061
Performance of the Group (continued)
Group Earnings (continued)
On the cost side, Group expenditure rose $609 million (+4.8 per cent) to $13,254 million. Fuel costs excluding
hedging – the biggest expense item of the Group – increased $877 million (+24.1 per cent), as average jet fuel
prices surged 26.3 per cent this year. This was partially offset by a smaller loss from fuel hedging ($62 million
versus $558 million).
Consequently, as revenue grew at a faster pace than expenditure, Group operating profit improved from
$63 million last year to $1,271 million for the financial year ended 31 March 2011. All the major companies
in the Group recorded improved operating results. Singapore Airlines (“the Company”) earned an operating
profit of $851 million in the financial year, representing a turnaround from the operating loss of $39 million the
previous year. SilkAir, in particular, achieved a record operating profit of $121 million. Please refer to the review
of the Company and subsidiary companies for further details.
FINANCIAL REVIEW