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Company Watch - Singapore Airlines.

For more company news, data and analysis, please go to: Aug 7, 2006

Singapore Airlines doubles first-quarter profit on record revenues, traffic. A one-time gain from the sale of property in Singapore and record traffic helped lift Singapore Airlines Group to a S$575.1 million ($364.3 million) profit in the first fiscal quarter ended June 30, more than double the S$234.6 million earned in the year-ago period. "Demand for air travel got off to a good start in the first quarter, with passenger load factors for all route regions showing gains over the same months last year," the airline said. "The outlook for air travel remains broadly positive for the rest of the financial year, supported by favorable economic conditions, particularly in the Asia/Pacific region and Europe...Fuel costs, however, continue to weigh on the Group's financial performance." Aug 2, 2006

Singapore Airlines' first fiscal quarter ended June 30, operating revenues increased 12.4% to a first-quarter record S$3.42 billion as expenses rose 12.8% to S$3.15 billion, driven by surging fuel costs. Excluding fuel, costs were up 1.3%. Operating profit climbed 8.2% to S$274 million. Turnover was boosted by a $223 million gain from the June sale of the 35-story SIA Building to TSO Investment, a subsidiary of a fund managed by CLSA Capital Partners, for S$343.9 million. The property was not considered a "core asset" and did not house SIA offices. Aug 2, 2006

Singapore Airlines flew 21.19 billion RPKs during its first fiscal quarter ended June 30,, a 9.4% increase over the year-ago period. Capacity rose 3.3% to 28.04 billion ASKs on the same 90 aircraft operated by SIA in the 2005 period. Load factor climbed 4.3 points to 75.6%. Yield was up 2.9% to S$10.6 cents and unit costs increased 7.1% to S$7.5 cents but dropped 7% excluding fuel. Aug 2, 2006

Singapore Airlines group's constituent company operating performance was as follows: The airline earned an operating profit of S$190 million, up 58.8%; SIA Cargo incurred an operating loss of S$5 million; Singapore Airport Terminal Services earned S$48 million, down 9.5%; SIA Engineering Co. earned $33.1 million, up 0.3%. The latter recently signed an MOU with India's Wadia Group to form an MRO joint venture in India. SIA Engineering will hold a 51% stake in the JV, which initially will offer line maintenance at eight airports. Aug 2, 2006
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Publication:Airguide Online
Date:Aug 7, 2006
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