Singapore Airlines

[kikababoo]

market cap only 11.26b, revenue 16b, cost, 15.2b, profit margin about 685milos...

Such a tough market for SIA. 

Staff cost grew by 1bn for full year.
Fuel cost up by 600m

Then revenue all time record also useless. kena more than offset by Staff + Fuel costs.

Dividend cut from 40 to 30 cts on full year basis.

30 cents over 9 + bucks, is abt 3% dividend yield.

At this rate, investing in SIA retail bond might be a better proposition than investing in SIA itself.

[brattzz]

Yeah, business time headlines is ‘full year gain slumps 47%’...!

[cyclone]

Scoot to add 16 Airbus A321neos to fleet to support growth plans
* 16 brand-new A321neo aircraft will progressively arrive from the last quarter of 2020
* Customers can look forward to aircraft being deployed on routes within six hours

Scoot today announced the introduction of 16 brand-new A321neo aircraft into its fleet. The first aircraft, named "Wings of Change", will be delivered in the last quarter of 2020 and will be used on routes within six hours (medium-haul markets). The new fleet will enable Scoot to meet its double-digit growth plan by the end of financial year 2020/2021. Of the 16 aircraft, six are an upsize from Scoot’s current A320neo order from Airbus, while 10 will be leased.

The A321neos, powered by Pratt & Whitney engines, will be delivered from Airbus' final assembly line. The single-aisle aircraft will be fitted with 236 seats, 50 more than that of the A320neo.

More details in https://links.sgx.com/FileOpen/20190726%...eID=572089

[cyclone]

All SIA group airlines continue to see improved passenger load factors in Sept

Uma Devi
15/10/2019, 6:21pm

SINGAPORE (Oct 15): Singapore Airlines Group (SIA) reported a 1.2 percentage point increase in passenger load factor (PLF) to 84.8% on the back of improved PLF figures across all its airlines.

In a bourse filing on its September operating results, SIA said that overall airlines’ passenger carriage grew 8.7% y-o-y, outpacing capacity growth of 7.1%.

Notably, regional carrier SilkAir recorded an increase of 3.7 percentage points in PLF to 77.3% as the system-wide passenger carriage grew by 7.2% against a 2.1% increase in capacity. The strong growth in passenger carriage for all regions led to increases in PLF for East Asia and Pacific, as well as West Asia.

The group’s flagship carrier Singapore Airlines’ PLF rose 1.0% from the preceding year to 85.4%. Passenger carriage increased 9.2% compared to last year, against capacity injection of 7.9%. Apart from a marginal decline in Americas, PLF improved for all other route regions including East Asia, Europe, West Asia and Africa and South West Pacific.

Budget air Scoot’s PLF rose 1.4 percentage points to 85.2% as passenger carriage increased by 7.4% against a capacity injection of 5.6%. PLF improved for West Asia as demand for India improved following the suspension of several underperforming routes. Rest of World also registered higher PLF as demand for long-haul routes to Europe improved, while East Asia's PLF remained flat.

More details in https://www.theedgesingapore.com/news/av...ctors-sept

[cyclone]

SIA 2Q revenue and earnings up despite mixed performances across group

Benjamin Cher
5/11/2019, 7:21pm

SINGAPORE (Nov 5): Singapore Airlines saw earnings of $94.5 million for 2Q20 ended Sept 30, 70% higher compared to a year ago.

SIA says this was mainly mainly due to higher contributions from associates and joint ventures of $78 million only to be offset by higher finance charges of $28 million.

Revenue for 2Q20 rose 5.3% to $768.5 million from $700 million a year ago mainly driven by growth in passenger-flown revenue, although the topline was dragged down by cargo-flown revenue.

Operating performances were mixed across the group. Parent airline reported a 1.7% decrease in operating profit to $233 million from $237 million a year ago; SilkAir reported losses remained unchanged at $3 million a year ago; while Scoot reported losses widened to $39 million from $11 million.

The increase in SIA’s revenue was led by a growth in passenger loads, but this was offset by weaker cargo revenue and higher net fuel and other expenditure. SilkAir also saw higher revenues from traffic growth of 3.1% but was matched by an increase in expenditure partly contributed by the grounding of the Boeing 737 MAX 8 aircraft.

Scoot saw passenger revenue rising $15 million, driven by a 5% increase in passenger carriage on 4.7% capacity growth. However this was offset by 7% higher costs, which included fuel.

Meanwhile, SIA Engineering reported a $8 million improvement in operating profit to $19 million mainly due to  higher revenue from airframe and line maintenance segment, lower subcontract costs and a favourable exchange variance.

Across the entire group, passenger revenue was up 7.5% to $244 million while cargo revenue dropped 16.3% to $93 million. Expenditure increased 4.7% to $180 million due to capacity injection which outpaced revenue growth of $160 million, or 3.9%.

More details in https://www.theedgesingapore.com/capital...ross-group

The Company is declaring an interim dividend of 8 cents per share (tax exempt, one-tier), amounting to $95 million, for the half-year ended 30 September 2019.
The interim dividend will be paid on 27 November 2019 to shareholders as of 15 November 2019.

See also :
1. https://links.sgx.com/FileOpen/sgxann-q2...eID=584449
2. https://links.sgx.com/FileOpen/nr-q2fy19...eID=584450
3. https://links.sgx.com/FileOpen/slide-q2f...eID=584451

[cyclone]

Sembcorp to Build 8.2 Megawatt-Peak Power Energy System on Singapore Airlines and SIA Engineering Company's Properties

Singapore Airlines (SIA) and SIA Engineering Company (SIAEC) have signed a power purchase agreement with Sembcorp Solar, a wholly-owned subsidiary of Sembcorp Industries (Sembcorp), to install and operate rooftop solar panels on their premises.

The solar panels will help to power onsite operations at various locations, with surplus power generated channelled to Singapore and Changi Airport Group’s electrical grids. This arrangement reinforces the SIA Group’s commitment towards renewable energy sources and more sustainable operations.

Under the agreement, Sembcorp Solar will install, own and operate over 20,000 solar panels. The panels will be installed at SIA’s Airline House, SIA Training Centre, TechSQ, five of SIAEC’s hangars and its Engine Test Facility. With a total capacity of 8.2 megawatt-peak (MWp), this will be the largest combined solar-power energy project for the aviation industry in Singapore.

Upon completion in June 2020, the project is expected to produce over 10,200 megawatt hours of power annually. This is enough renewable energy to power more than 2,290 four-room HDB flats for a year. It will also help offset over 4.3 million kilogrammes of carbon dioxide emissions a year, equivalent to taking approximately 930 cars off the road or planting over 52,000 trees.

The move to harness green energy complements SIA’s goal to reduce 15 per cent of its electricity consumption in its offices by FY2020/21 as well as SIAEC’s goal to reduce 15 per cent of its energy consumption by FY2023/24 (compared to base year FY2013/14).

More details in https://links.sgx.com/FileOpen/SGXNET_20...eID=596091

[Behappyalways]

Singapore Airlines to cut flights as coronavirus epidemic hits demand
https://www.reuters.com/article/us-china...0C09L?il=0


Singapore Airlines cuts 670 flights from March to May amid coronavirus outbreak
https://www.scmp.com/news/asia/southeast...stinations

[Behappyalways]

SIA slashes capacity by half, warns of further cost and capacity cuts
https://www.theedgesingapore.com/news/av...acity-cuts

[touzi]

SIA is in trouble and it deserves a helping hand

https://www.straitstimes.com/business/companies-markets/sia-is-in-trouble-and-it-deserves-a-helping-hand

Excerpt for those who cannot get over the paywall:

The airline will be in deep financial distress by the end of this quarter as revenue dives and cash flow dries up.

The company typically generates between $4.1 billion and $4.4 billion in revenue per quarter. During October to December last year, SIA's third quarter generated $4.5 billion in revenue and had an operating cost of $3.4 billion, excluding borrowing and leasing cost of $191 million.

UOB Kay Hian's K. Ajith estimates that SIA's revenue could decline by $1 billion during the current final quarter. Meanwhile, about 70 per cent of operating costs are fixed and variable costs, which are unlikely to decline at a faster rate than revenue, he noted.

"As such, after factoring in interest and lease payments, we expect SIA to see operating cash burn of about $240 million in just the final quarter, or about $80 million per month. SIA could potentially lose over $140 million in April, given the likely steeper decline in traffic. Though it had cash of just $1.57 billion, factoring in short-term debt of $835 million as at end 2019 and capex (capital expenditure) commitment of $6 billion, it would be in a precarious position by end June, if the Government doesn't step in with additional liquidity."
In short, a potentially painful endgame lies ahead.

The article concluded with this:

It would indeed be a sad day for Singapore if a national icon and an internationally admired brand is allowed to disappear due to no fault of its own.

Although SIA has been facing a lot of headwind in recent years, I don't remember anyone ever say that it will run out cash,...until now. It is no longer about dropping profit. 

[opmi]

Temasek will step in with rights issue, like for DBS and Capitaland during GFC...

If not, my KF miles at risk....hahahah......now trying to liquidate my AsiaMiles...