SINGAPORE Airlines* has taken an impairment loss of S$293.4 million on four surplus freighter aircraft that have been removed from the operating fleet and marked for sale.
The loss is revealed in the SIA Group’s financial performance for the 2013-14 third quarter, in which it says its air cargo outlook is relatively flat, with yields under pressure in the face of overcapacity.
The group recorded an operating profit of S$151 million for the quarter – S$20 million higher (+5.3 per cent) than the same quarter a year ago.
Group net profit for the third quarter was S$50 million – a decline of S$93 million or 65 per cent from the corresponding period a year ago.
This, it says, was largely due to exceptional items of S$80 million (SIA Cargo reached a settlement with the plaintiffs in the previously disclosed United States Air Cargo Class Action for an amount of S$78.3 million) and its share of losses and one-off items from associated companies, mainly Tiger Airways.
On the air cargo class action, the settlement was without admission of any wrongdoing or liability and is subject to the approval of the United States District Court. In a previously-disclosed Swiss air cargo competition law case, the Swiss Competition Commission imposed a fine of S$2.3 million.
The group adds that SIA Cargo will study the grounds of the Commission’s decision and may appeal to the Swiss Federal Administrative Tribunal. Both the United States Air Cargo Class Action and Swiss air cargo competition law case relate to alleged conduct up to 2008.
* SIA Cargo reported an operating profit of S$1 million during the seasonal peak in the third quarter – supported by ongoing efforts to better-match capacity with demand. This compared with a S$29 million loss for the airline’s cargo arm the previous year. SIA Cargo’s load factor declined 1.3 percentage points to 63.5 per cent, as the 3.5 per cent reduction in freight carriage (in load tonne kilometres) outpaced the 1.6 per cent reduction in cargo capacity (in capacity tonne-kilometres).
SIA removes four freighters from fleet
Cargo archive stories #229
Thursday, 27 February 2014
SINGAPORE Airlines* has taken an impairment loss of S$293.4 million on four surplus freighter aircraft that have been removed from the operating fleet and marked for sale.
The loss is revealed in the SIA Group’s financial performance for the 2013-14 third quarter, in which it says its air cargo outlook is relatively flat, with yields under pressure in the face of overcapacity.
The group recorded an operating profit of S$151 million for the quarter – S$20 million higher (+5.3 per cent) than the same quarter a year ago.
Group net profit for the third quarter was S$50 million – a decline of S$93 million or 65 per cent from the corresponding period a year ago.
This, it says, was largely due to exceptional items of S$80 million (SIA Cargo reached a settlement with the plaintiffs in the previously disclosed United States Air Cargo Class Action for an amount of S$78.3 million) and its share of losses and one-off items from associated companies, mainly Tiger Airways.
On the air cargo class action, the settlement was without admission of any wrongdoing or liability and is subject to the approval of the United States District Court. In a previously-disclosed Swiss air cargo competition law case, the Swiss Competition Commission imposed a fine of S$2.3 million.
The group adds that SIA Cargo will study the grounds of the Commission’s decision and may appeal to the Swiss Federal Administrative Tribunal. Both the United States Air Cargo Class Action and Swiss air cargo competition law case relate to alleged conduct up to 2008.
* SIA Cargo reported an operating profit of S$1 million during the seasonal peak in the third quarter – supported by ongoing efforts to better-match capacity with demand. This compared with a S$29 million loss for the airline’s cargo arm the previous year. SIA Cargo’s load factor declined 1.3 percentage points to 63.5 per cent, as the 3.5 per cent reduction in freight carriage (in load tonne kilometres) outpaced the 1.6 per cent reduction in cargo capacity (in capacity tonne-kilometres).
