SIA’s Q3 profits spike 35.7% to $275.6m

Thanks to aircraft disposal and raised operating profit.

Singapore Airlines’ (SIA) reported profits for 3QFY16 soared 35.7% YoY to $275.6m, thanks to increased operating profit and a gain of $53.3m from aircraft disposal.

According to OCBC, these were offset, though, by raised tax expense incurred, aircraft impairment, and flagging performance of associates.

During the quarter, SIA’s revenue dipped 3.9% or $158m to $3.94b on back of a 4.6% pullback in passenger yield and a 13.5% drop in cargo yield.

Total expenditure slipped 7.6% to $3.65b thanks to tapered net fuel costs as average jet fuel price fell by a material 41.1%. However, the strengthening of USD against as as well as hedging losses partially offset the fuel savings.