Singapore Airlines reports fiscal 1H profit despite challenging market conditions and Tigerair losses
Singapore Airlines reports fiscal 1H profit despite challenging market conditions and Tigerair losses
Singapore Airlines (SIA) and its regional subsidiary SilkAir remained profitable in the quarter and half ending 30Sep2014 despite extremely challenging market conditions in Southeast Asia.But the group’s net profit has been on the decline due primarily to the heavy losses at LCC affiliate Tigerair.
SIA is now in the process of increasing its stake in Tigerair which pending approvals will result in the LCC becoming a subsidiary. SIA is not considering taking over Tigerair entirely and instead will focus on pursuing synergies, particularly with its long haul LCC subsidiary Scoot,while supporting Tigerair’s on going turnaround efforts.
SIA long term outlook is relatively bright but several components of its strategy, including its investments in the LCC sector and its new full service joint venture in India, will likely continue to have a negative impact on earnings for the short to medium term. The fact the SIA Group has so far been able to stay in the black overall is a noteworthy accomplishment.
Despite a slowdown, SIA outperforms most Southeast Asian competitors
The SIA Group reported on 6 Nov 2014 a 45% reduction in net profit to SGD91 million for the three months ending 30 Sep 2014 . But the group’s operating profit for the quarter was up by 52% to SGD132 million.
The improvement in operating profit is noteworthy as market conditions in Southeast Asia have been extremely challenging so far this year.As CAPA has previously described, only four of the 18 publicly traded Airlines including subsidiaries and affiliates in Southeast Asia
SIA Group operating results,
Air Tiger New York,
Changes in Market Conditions,
Property Market Conditions,
Current Market Conditions,
London Stock Market Report,
London Market Report,
Today Stock M Report,
Mohini Porwal [ B Sc]
Trainee News Editor
Philipines Aviation News Editor
www.Philippine-Aviation-News.blogspot.com
mohini.aerosoft@gmail.com
https://www.facebook.com/profile.php?id=100005944964687
www.AeroSoft.co.in
www.Philippine-Aviation-News.blogspot.com
www.Newzealand-Aviation-News.blogspot.com
www.Aviation-News-India.blogspot.com
www.Canadian-Aviation-News.blogspot.com
WWW.Indian-Aviation-News.blogspot.com
Singapore Airlines (SIA) and its regional subsidiary SilkAir remained profitable in the quarter and half ending 30Sep2014 despite extremely challenging market conditions in Southeast Asia.But the group’s net profit has been on the decline due primarily to the heavy losses at LCC affiliate Tigerair.
SIA is now in the process of increasing its stake in Tigerair which pending approvals will result in the LCC becoming a subsidiary. SIA is not considering taking over Tigerair entirely and instead will focus on pursuing synergies, particularly with its long haul LCC subsidiary Scoot,while supporting Tigerair’s on going turnaround efforts.
SIA long term outlook is relatively bright but several components of its strategy, including its investments in the LCC sector and its new full service joint venture in India, will likely continue to have a negative impact on earnings for the short to medium term. The fact the SIA Group has so far been able to stay in the black overall is a noteworthy accomplishment.
Despite a slowdown, SIA outperforms most Southeast Asian competitors
The SIA Group reported on 6 Nov 2014 a 45% reduction in net profit to SGD91 million for the three months ending 30 Sep 2014 . But the group’s operating profit for the quarter was up by 52% to SGD132 million.
The improvement in operating profit is noteworthy as market conditions in Southeast Asia have been extremely challenging so far this year.As CAPA has previously described, only four of the 18 publicly traded Airlines including subsidiaries and affiliates in Southeast Asia
SIA Group operating results,
Air Tiger New York,
Changes in Market Conditions,
Property Market Conditions,
Current Market Conditions,
London Stock Market Report,
London Market Report,
Today Stock M Report,
Mohini Porwal [ B Sc]
Trainee News Editor
Philipines Aviation News Editor
www.Philippine-Aviation-News.blogspot.com
mohini.aerosoft@gmail.com
https://www.facebook.com/profile.php?id=100005944964687
www.AeroSoft.co.in
www.Philippine-Aviation-News.blogspot.com
www.Newzealand-Aviation-News.blogspot.com
www.Aviation-News-India.blogspot.com
www.Canadian-Aviation-News.blogspot.com
WWW.Indian-Aviation-News.blogspot.com
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