The Singapore Airlines Group (SIA) today reported for the 2018/19 financial year ending 31 March that cargo flown revenue improved 2.1 per cent (S$45 million) to over $2.2 billion.
Cargo yield growth was 5.7 per cent to 31.7 cents from 30 cents and the group said this was more than sufficient to “offset lower loads carried in a softening trade environment”.
SIA Group carried 1.29 million kilogrammes of cargo and mail in the 2018/19 financial year, 0.2 per cent less than the previous 12 months.
The load factor for the 2018/19 year across its network was 62.5 per cent, a fall of 2.8 percentage points on 2017/18.
SIA Group said its cargo operations will continue to pursue charter opportunities and deploy capacity to match demand. The freighter network covers 19 cities in 13 countries and territories, including Singapore.
As a whole, SIA Group reported a solid operating profit of $1,067 million for the 2018/19 financial year amid a challenging market environment but down 31.1 per cent on last year’s $1,549 million.
Group net profit for the financial year was $683 million, 47.5% lower year-on-year. The reduction was primarily due to the lower operating profit (-$482 million), in addition to higher non-operating costs.
SIA Group said underlying performance was strong against the backdrop of a $1 billion increase (+25.1 per cent) in fuel cost due largely to a 21.6 per cent increase in fuel prices, and the absence of one-off revenue items recorded last year (-$243 million).
As for the future, SIA said: “Notwithstanding the current demand picture, ongoing trade disputes and slowing economic growth in key markets pose uncertainty to the operating environment.
“Efforts will be made to capture opportunities and mitigate any arising weaknesses in both cargo and passenger segments.”