Singapore Airlines profit fell 38% in 4Q FY2010-11

SIA's profit fell to $171 million, amid higher fuel prices and lower load factors.

However, Singapore Airlines reported a net profit attributable to equity holders of $1,092 million for the 2010-11 financial year, which was adversely affected by the global financial crisis.

According to SIA, group revenue grew $1,817 million to $14,525 million as both carriage and yields recovered from depressed levels last financial year.

Consequently, Group operating profit improved from $63 million last financial year to $1,271 million for the financial year ended 31 March 2011. The Parent Airline Company earned an operating profit of $851 million in
the financial year, representing a turnaround from the operating loss of $39 million the previous financial year. All the major companies in the Group recorded improved operating results.

For the Fourth Quarter 2010-11, Group revenue at $3,587 million improved by 8% (+$251 million) compared to the corresponding period last financial year, supported by the continued recovery in yields.

However, this was outpaced by increase in Group expenditure of 11%, mainly from higher fuel cost as jet fuel prices spiked 34% year-on-year. This was partially offset by hedging gains of $38 million.

As a result, Group operating profit for the quarter fell $75 million from the same quarter last financial year to $166 million.