SIA beats expectations with highest profit in seven years

Singapore Airlines Thursday topped market expectations by reporting a 148% rise in full-year net profit to the highest level since 2011, as passenger and cargo revenue rose and it benefited from a transformation program. However, it warned of pressures from intense competition, costs and rising fuel prices despite strong bookings for the coming months and a continued stabilization in airfares. The carrier made S$893m in the year ended March, up from S$360m a year earlier and 28% higher than the S$697m average forecast from 14 analysts polled by Thomson Reuters. A strong Q4 marked a turnaround from a year ago, when an operating loss by its flagship full-service airline led the company to launch a three-year transformation program designed to cut costs and boost revenue. SIA said transformation initiatives including a new revenue management program, a new airfare pricing structure and the establishment of a centralized pricing unit boosted revenue, while the airline also saved costs via more efficient use of fuel and waste reduction. “The first year of the ... three-year transformation program has shown good progress,” the airline said. “The next two years of the program will further build on initiatives around enhancements to the customer experience, revenue growth and improvements in operational efficiency.”<br/>