The operating profit of Singapore Airlines Group amounted to 595 million USD in 2015 fiscal year, which represent an increase of 18.5% yoy. The Group’s revenues increased by 200.5 million USD (+66.1% yoy) up to 503 million USD. The dividends received from long-term investments increased by 75.4 million USD, while the Group’s share of losses from associates has been reduced by 87.3 million USD. Also, the company SIA Cargo reimbursed payments for the previous year recovery 86.5 million USD. The low oil prices, increasing passenger traffic and the restructuring of the company supported the positive finance statement of Singapore Airlines.
The positive effect of these revenues decreased partially due to higher tax expenses, which amounted to 62.1 million USD. The unscheduled absence of exceptional gains dropped to 25.9 million USD, and reduce the financial performance of joint ventures 21.4 million USD.
“We believe Singapore Airlines’s improving fuel hedges couldn’t have come at a better time—a period of intense competition where weak yield environment is the result. In our view, the key factor is whether Singapore Airlines’s declining unit cost from cheaper jet fuel is able to outpace the weak yields outlook”, said the official statement of the company.
Singapore Airlines Limited is the flag carrier of Singapore with its hub at Singapore Changi Airport. It includes many airline-related subsidiaries, such as SIA Engineering Company handles maintenance, repair and overhaul business across nine countries, with a portfolio of 27 joint ventures, including with Boeing and Rolls-Royce. Singapore Airlines Cargo operate SIA’s freighter fleet and manages the cargo-hold capacity in SIA’s passenger aircraft. It has three airlines subsidiaries – SilkAir operates regional flights to secondary cities, while Scoot and Tigerair operate in the low-cost carrier sector.