, Singapore

Why some analysts aren't very happy about Singapore Airlines' 75% profit jump

Earnings soared to $158m.

According to CIMB, SIA’s 2QFY14 core net profit of S$158m was a 75% improvement yoy, while its operating profit rose 23% yoy. 

However, this jump was less than we had expected, as passenger yields of the parent airline continued to drag.

Here's more from CIMB:

2QFY14 yields slumped 3.5% yoy, and fell for the seventh straight quarter on a yoy basis, although the profitability of the mainline carrier rose 15% yoy.

Conversely, while SilkAir’s yields increased 2% yoy, its profitability slid 58%. Softness in cargo markets persisted into 2QFY14, although the fall in yields of 2% yoy was better than what had been recorded over the last five quarters.

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