The SIA Group reports that it
achieved a net profit attributable to equity holders of $1,092
million for the 2010-11 financial year, an increase of $876 million
from the $216 million profit last financial year, which was
adversely affected by the global financial crisis. The Group notes
that the 2010-11 financial year result included an exceptional item
of $202 million in respect of provision for fines imposed on SIA
Cargo. Additionally, Group revenue grew $1,817 million (+14%) to
$14,525 million as both carriage and yields recovered from
depressed levels last financial year. This revenue growth was
achieved in a year punctuated by disruptions ranging from volcanic
ash in Europe, snowstorms in Europe and USA, floods in Australia,
and earthquakes in New Zealand and Japan. On the cost side, the
Group states that its expenditure rose $609 million (+5%) to
$13,254 million.
Fuel costs excluding hedging - the
biggest expense item of the Group - increased $877 million (+24%),
as average jet fuel prices surged 26% this financial year. This was
partially offset by a smaller loss from fuel hedging ($62 million
versus $558 million). The Group discloses that after considering
the financial performance and long-term capital adequacy of the
Company, the Board is recommending a special dividend of 80 cents
per share (tax exempt, one-tier). In the year to March 2012, the
company reveals that it expects to take delivery of eight A380-800s
and decommission five B777s and all seven B747-400s. The net
decrease of four aircraft will bring the operating fleet to a total
of 104 aircraft by March 2012. The reduction in fleet size will be
more than offset by increased utilisation to produce passenger
capacity growth of 6 per cent in available seat-kilometres for the
2011-12 financial year.