Singapore Airlines promo fares triggered 10% passenger load rise

But passenger yields fell 3% resulting to a smaller increase of 7% in SIA's revenue.

According to OCBC, Singapore Airlines swung back to an operating profit of S$85m in 1QFY13, from the S$36m loss a year ago. The introduction of promotional fares helped the parent airline to increase passenger carriage by 10% YoY. However, its passenger yields fell 3% and resulted in a smaller increase of 7% YoY in the parent airline’s revenue.

Here's more from OCBC:

While there is little doubt that the promotional fare strategy has worked, one has to also consider that air travel in 1QFY12 was depressed by the Japanese earthquake in Mar 2011.

Singapore Airlines’ (SIA) 1QFY13 financial results improved YoY despite the historically lower 1Q. The group’s revenue grew 6% YoY to S$3.8b while its PATMI jumped 74% to S$78m, albeit off the low base of 1QFY12. SIA’s operating expenses grew 5% YoY, which was slower than its revenue growth and could be partially explained by the retreat in jet fuel prices. According to Bloomberg, the average S$-adjusted Singapore Jet Kerosene fob Spot Cargo Price (JETKSIFC) illustrated in Exhibit 2 fell 8% QoQ in 1QFY13. With the lower jet fuel prices, SIA’s fuel cost only rose 4% to S$1.5b despite much higher business activity in the group’s different business segments.