SIA profits soared 67.9% to $94m in Q2

A rise in profits from associates and joint ventures fuelled its growth.

Singapore Airlines' (SIA) net profit soared 67.9% YoY to $94m in Q2 FY 2019-2020, the company announced. Revenue rose 3.9% to $160m over the same period.

Rising above its Q1 loss, profits for the first half of the financial year rose 5.1% YoY to $206m, whilst revenue climbed 5.3% to $418m.

A $78m improvement in share of results from associates and joint ventures launched the group’s profits up, although partially dragged down by higher net finance charges of $28m.

However, the operating profit for Q2 fell 8.6% to $213m due to a 4.7% growth in expenditure mainly from capacity injection. Ex-fuel cost rose 6% following a 6.2% increase in capacity, whilst net fuel costs edged up 1.7%.

Passenger revenue expanded 7.5% for the quarter, although cargo revenue shrank 16.3%.

Operating profit from its parent airline company dipped 1.7% to $233m for the quarter, and SilkAir and Scoot recorded operating losses of $3m and $39m respectively. In contrast, SIA Engineering posted a $8m improvement in operating profit over the same period.

The group expressed to continue boosting revenue from ramping up its digital capabilities like its expansion of the KrisConnect programme.