SIA crashes into a net loss of $6.4m

Blame the one-off provision in relation to competition-related fines.

Singapore Airlines’ (SIA) 4QFY17 swung to a core net loss of at $6.4m, vs. core PATMI of $127.3m a year ago, as it recorded a one-off provision of $131.9m in relation to competition related fines.

According to OCBC Investment Research, the group's 4QFY17 revenue was flat YoY at $3.72b despite traffic growth (+5.5%), as yields remained under intense pressure.

Operating expenses grew 3.5% YoY to $3.69b due to higher average fuel prices as well as the double-digit capacity expansion by Budget Aviation Holdings (i.e. Tigerair and Scoot) and SilkAir. For FY17, revenue fell 2.4% to $14.9m with weaker performances at passenger airlines and cargo airline on the back of yield erosion, absence of income from aircraft delivery slot changes, but mitigated by a one-time credit upon change in timing of revenue recognition of utilized tickets.

Consequently, with a 2.1% reduction in operating expenses on cheaper fuel costs, FY17 core PATMI was below expectations as it declined 16.0% to $372.1m, forming 80.8% of our FY17 forecast.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia