Singapore Airlines

[BlueKelah]

No wonder still trading low loh, Haha best thing is go ask buffet to buy then up 😀 he seems like on airline buying spree.

Actually loss making arm can divest. Weak global economy I dun think it will pick up next few years.

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[ericds]

Haven't look at this stock for a while but couple years back the cargo segment which is also part of SIA was doing very badly and big drag on results.

Maybe cargo still doing badly and not recover yet.

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Yes their CARGO arm still loss making, but should be narrowing. SQ should sell off their 20% stake in Ritz Carlton Singapore and buy a stake in Changi Airport, synergize and diversify. I am sure Temasick and garmen will agree to this. Also another thing to note, their fuel cost is progressively lowered every quarter which is a good sign. 

In my view another way for airliners to gain dominance is to acquire or buy out competitors. What they did with Virgin Aus and Tata is a step in the right direction. 

Many things management can do to increase value for shareholders. Can only hope.

Selling Ritz in exchange for Changi would make a world of sense. Ryanair is already sharing revenues from several airports and SIA could go a step further to ownership, if possible also regional airports.



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[touzi]

SIA's A350 landed in Moscow amid much fanfare.

[Scg8866t]

http://www.travelweekly.com/Preview2017/...-SIngapore

CEO thoughts and views on SIA's current strategy and new synergies that he sees.

"We used to operate Singapore Airlines to Athens, with a full-service provision. But it wasn't economically viable because there wasn't enough premium traffic. There was a lot of leisure, and visits to friends and relatives, so we dropped the route from Singapore Airlines, and it will be operated by Scoot next year. Scoot is more than 45% lower in terms of unit cost compared to Singapore Airlines and can be profitable on that route."

[Scg8866t]

Changi passenger traffic up 5.7% in first 11 months
30 Dec 2016 09:00
By Nisha Ramchandani
PASSENGER traffic at Changi Airport grew 5.7 per cent to 53 million in the first 11 months of this year, putting the airport on track to post year-on-year growth.
Other metrics such as aircraft movements and cargo traffic for the January-to-November period were also up year on year. Cargo shipments grew 6.1 per cent to 1.79 million tonnes, while aircraft take-offs and landings increased 4.1 per cent to reach 328,520.
Last year, the airport handled a record 55.4 million passengers, with some 5.29 million passengers passing through Singapore in December 2015.
Last month, Changi handled 4.78 million passengers, up 3.2 per cent year on year.
Meanwhile, aircraft movements expanded 3.4 per cent to 29,710 landings and take-offs, while cargo shipments were up 7.9 per cent at 173,170 tonnes.
According to airport operator Changi Airport Group (CAG), passenger traffic in November was bolstered by growth in air travel to and from South-east Asia, North-east Asia and South Asia.
"Among Changi's top 10 country markets, China (13.7 per cent), Vietnam (9.9 per cent) and India (9.8 per cent) led the gainers," said CAG. "As for Changi's top 10 cities, strong traffic growth was observed between Singapore and South-east Asian cities such as Kuala Lumpur, Denpasar, and Ho Chi Minh City."
Next year will see the opening of Terminal 4 (T4), which has already received its temporary occupation permit; the terminal will boost capacity by 16 million annually when it comes onstream in the second half of 2017. Meanwhile, trials will begin from the year-end to ensure operational readiness, such as the testing of airport systems and processes, which will involve live flights.
Against the backdrop of a tight labour market, T4 will adopt a slew of do-it-yourself options and other initiatives such as self-service boarding and a centralised security screening.
In November, more flights out of Changi were mounted - a new service to Kolkata in India by Air India Express.
Jet Airways commenced daily services to Bangalore this month.
Meanwhile, SilkAir has launched four weekly services to Fuzhou, while Xiamen Airlines boosted its frequency between Singapore and Xiamen from 14 times weekly to 17 times weekly.
In addition, Myanmar National Airlines has added frequency to Yangon, taking its service from seven weekly flights to 12 weekly flights as at Dec 1.
* This article was published in The Business Times on 29 Dec 2016 and is reproduced here with permission in its entirety.

[Scg8866t]

Price moved up to 9.95. SIA preparing for "first class" battle with the middle east airliners. First Class moved to upper deck, premium economy take the nose? Seems like a good idea, maybe a bar lounge for first class as it may be at the upper deck away from the rest(social element never before in SIA). Have to wait and see.

https://www.ausbt.com.au/singapore-airli...s-mid-2017

Singapore Airlines will reveal its all-new Airbus A380 first class suites mid-year, ahead of their debut on a fresh superjumbo fleet arriving from late 2017.

The Star Alliance member hopes that its launch of the luxe suites – slated for a massive media event to be held in Singapore – will make the airline more appealing to first class flyers in face of competition from Emirates and Etihad Airways.

[Scg8866t]

http://repository.shareinvestor.com/rpt_...pe/si_news

In December 2016, SIA Group airlines' passenger carriage (measured in revenue passenger kilometres)
increased by 5.3% compared to last year, outpacing growth in capacity (measured in available seat
kilometres) of 4.5%. Passenger load factor (PLF) rose 0.6 percentage points to 82.9%.

Singapore Airlines' PLF improved 0.3 percentage points to 82.4%. Compared to last year, passenger carriage
was 0.5% higher against a marginal 0.1% increase in capacity. PLF improved for East Asia, Americas and
Europe due to stronger demand from year-end holiday travel. However, PLF for South West Pacific declined
as capacity growth outstripped demand, while loads for West Asia and Africa were lower due to softer
passenger demand. The competitive landscape remains challenging and promotional activities will continue in
relevant markets.

SilkAir’s systemwide passenger carriage increased by 14.6%, ahead of capacity growth of 14.1%.
Consequently, PLF increased by 0.4 percentage points to 75.5%. Growth in passenger carriage for East Asia
and Pacific exceeded capacity growth, resulting in a 0.5 percentage point increase in PLF, while in West Asia
demand growth substantially matched sizeable capacity injection.
Scoot’s systemwide passenger carriage grew by 45.0% year-on-year. Capacity expanded by 42.7% as the
number of aircraft increased from nine to twelve. Consequently, PLF improved by 1.4 percentage points to
87.4%. New routes were added to Japan, China, India and Saudi Arabia during the year.
Tigerair’s systemwide passenger carriage increased by 3.4% year-on-year on the back of a 0.9% increase in
capacity. Consequently, PLF improved by 2.1 percentage points to 88.3%. Growth in demand for many
destinations was encouraging during the festive year-end.

Cargo load factor (CLF) was 1.5 percentage points higher, with cargo traffic (measured in freight-tonnekilometres)
increasing 8.8% against overall capacity growth of 6.3%. Healthy growth on cargo traffic was led
by demand on key routes from North Asia to the US and Europe.

[corydorus]

With budget type of carriers included into the group and competition, the margin or profit of SIA group will tell the fuller picture.

[BlueKelah]

SQ317 from London to SG was delayed by 5 hours today before finally making its Brexit to Singapore. SIA win liao loh. 

https://www.google.com.au/search?q=sq317

[Scg8866t]

SQ317 from London to SG was delayed by 5 hours today before finally making its Brexit to Singapore. SIA win liao loh. 

https://www.google.com.au/search?q=sq317

Nice finally broke above 10 to 10.04. 

Fewer airline chiefs upbeat about profit growth for the year
23 Jan 2017 09:00
By Nisha Ramchandani
nishar@sph.com.sg
SOME 40 per cent of airline heads expect profits to grow in the coming year, but this figure is down from previous years, suggesting that momentum in the profitability cycle has weakened.
The norm a few years ago was 60 to 70 per cent, noted the International Air Transport Association (Iata) in the latest Airline Business Confidence Index.
On the other hand, profitability was unchanged in Q4 2016 from the corresponding quarter in 2015. Among the airline chief financial officers and heads of air cargo polled for the quarterly survey done this month, 39 per cent reported an increase in profits; another 39 per cent recorded a decrease, and 22 per cent, no change.
But where passenger traffic was concerned, half the respondents reported a year-on-year increase in Q4 2016. Iata said: "However, ongoing disruption and uncertainty in certain markets, particularly Turkey, was noted by a number of participants." Three-quarters of the respondents (74 per cent) - the highest proportion since October 2013 - said they expect passenger volumes to go up over the next 12 months due to a pickup in the economic cycle.
For air freight, 52 per cent reported an annual increase in cargo volumes in Q4 2016.
And while the outlook for global trade remains weak for now, the expectations are for a pickup in cargo volumes over the next 12 months.
The survey also showed that the operating environment has become tougher since mid-2016, plagued by double whammy of higher fuel prices and declining yields.
Iata said: "Oil prices increased over the course of 2016 and are currently around twice the 12-year low level reached in January 2016."
In its 2017 outlook released late last year, Iata had projected that jet fuel would rise from an average US$52 a barrel in 2016 to US$65 a barrel in 2017. Jet fuel, a substantial operating expense for airlines, accounts for slightly under a third of total industry costs.
However, the rise in fuel costs may also be affected by hedges that airlines have locked in, as well as currency translation effects. Oil prices are typically quoted in US dollars.
Meanwhile, nearly two-thirds of those polled reported lower passenger yields in Q4 2016 than in Q4 2015. Nearly a quarter (23 per cent) said they expect yields to pick up over the year ahead, but more than three-quarters expect yields to either stay flat or fall further.
On the cargo front, 18 per cent reported a year-on-year increase in freight yields in Q4 2016, the highest figure in two years. However, concerns about future capacity continue to weigh on expectations.
In particular, this is related to belly-hold capacity coming from new passenger planes. More than 90 per cent of respondents said they expect cargo yields to stay unchanged or fall further in the coming year, said Iata.
Finally, 38 per cent of survey respondents reported an increase in employment levels in Q4 2016 from the corresponding period in 2015. Half the respondents said that they expect employment levels to remain unchanged over the next 12 months.