Singapore Airlines 2016 Annual Report Download - page 48

Financial Review
Performance of the Group
(continued)
Quarterly Trend of Group Fuel Price and Fuel Cost
(excluding hedging)
$ Million USD/BBL
1,500
1,000
500
150
120
90
60
30
2014/15
Q1 Q2 Q3 Q4 Q2Q1 Q3 Q4
2015/16
Fuel Price before hedging
(USD/BBL)
Fuel Cost
(excluding hedging)
Group Expenditure
31.1%
Fuel Costs Aer Hedging
5.4%
Aircra
Maintenance
and Overhaul
Costs
17.0%
Depreciation &
Lease Rentals
16.7%
Others
16.9%
Sta
Costs
5.0%
Passenger Costs
7.9%
Handling
Charges
-4.0%
to $14,547 million
Group Earnings (continued)
Group expenditure decreased by $609 million
(-4.0 per cent) year-on-year to $14,547 million,
primarily from a $1,053 million reduction in net fuel
cost. Average jet fuel price before hedging tumbled
41.3 per cent against last year, translating into fuel
cost savings of $2,152 million. Higher fuel hedging loss
($591 million), strengthening of the US Dollar against
the Singapore Dollar ($298 million), and a 4.0 per cent
increase in fuel volume uplied ($210 million) partially
eroded the fuel cost savings. Non-fuel costs increased
$444 million (+4.6 per cent), mainly attributable to an
increase in aircra maintenance and overhaul costs,
sta costs, and expenditure arising from SilkAir’s and
Scoot’s capacity growth.
Consequently, the Group’s operating profit improved
$271 million (+66.4 per cent) to $681 million for
the financial year ended 31 March 2016. Except
for Singapore Airlines Cargo Pte Ltd (“SIA Cargo”),
operating performance for all the major companies in
the Group improved over last year. The Parent Airline
Company earned an operating profit of
$485 million in the financial year, up $145 million
compared to last year. SIA Cargo’s operating loss
widened by $28 million compared to the prior year,
largely from yield erosion on the back of the weak
air freight market, partially alleviated by lower fuel
costs. Please refer to the review of the Company and
subsidiary companies for further details.
Singapore Airlines46
PERFORMANCE