Singapore Airlines 2016 Annual Report Download - page 25

The Singapore Airlines Group earned an operating profit
of $681 million for the financial year ended 31 March
2016, a 66.4 per cent increase from last year, while profit
attributable to owners of the Parent grew 118.6 per cent
to $804 million.
Financial Year Operating Results
The Group saw an increase in operating profit of
$271 million to $681 million despite a marginal drop in
Group revenue to $15,228 million. Passenger revenue
declined over last year as yields decreased. Group
expenditure fell $609 million from the last financial year,
with a $1,053 million reduction in net fuel cost.
Operating Performance
During the year in review, passenger carriage (in revenue
passenger kilometres) for the Parent Airline Company
increased 0.1 per cent on the back of a 1.4 per cent drop
in capacity (in available seat-kilometres). Consequently,
passenger load factor increased 1.1 percentage points to
79.6 per cent. SilkAir registered a passenger load factor
of 71.5 per cent, a 1.3 percentage-point increase from
last year. With eorts to expand the regional network,
passenger carriage rose 11.1 per cent, outpacing the
9.1 per cent growth in capacity. SIA Cargo’s freight
carriage (in load tonne-kilometres) rose 2.6 per cent,
against a 4.9 per cent expansion in capacity (in capacity
tonne-kilometres). Load factor therefore fell
1.4 percentage points to 61.9 per cent.
Outlook
The Group is contending with a challenging operating
environment in key markets, caused in part by weak
economic activity and relatively rapid growth in
capacity, evidenced by increasing promotional fare
activity. Nevertheless, the Group is well positioned to
compete in this environment.
The entrance of the A350-900 fleet will help to boost the
Group’s network competitiveness, improve operating
eiciency, and oer opportunities to open up more new
routes to long-haul destinations. In addition, the full
ownership of Tigerair is expected to enhance synergies
across the SIA Group.
The Group remains fully committed to its multi-pronged
approach to address the structural changes that have
been taking place in the industry, through its portfolio
of airlines serving both full-service and budget airline
segments of the market, its multi-hub strategy, the
pursuit of adjacent business opportunities, and ongoing
enhancement of premium products and services.
The Board of Directors recommends a final dividend
of 35 cents per share for FY2015/16. Including the
interim dividend of 10 cents per share paid on 27
November 2015, the total dividend for FY2015/16 will
be 45 cents per share. The final dividend (tax exempt,
one-tier) is to be paid on 17 August 2016 to shareholders
as at 4 August 2016.
ON LEFT
1. Two Singapore Airlines A380s
donned a special livery as part of the
Airline's celebrations for Singapore's
50th birthday.
2. Singapore Airlines welcomed
the arrival of its first A350-900 at
Singapore Changi Airport on
3 March 2016.
3. The iconic Singapore Girl
participated in the National Day
Parade on 9 August 2015.
Group
Operating
Profit of
$681m
+66.4%
SIA Passenger
Load Factor
79.6%
+1.1
percentage
points
3.7%
increase in passengers carried
by Group airlines
The Singapore Airlines Group earned an
operating profit of $681 million for the financial
year ended 31 March 2016, a 66.4 per cent
increase from last year.
Annual Report FY2015/16 23