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.
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