Cargo contributes to Singapore Airline’s bottom line
Singapore Airlines Group said it turned an operating profit of Singapore $680 million ($395.6 million) for the fiscal year ended March 31, with one-third of that amount due to currency exchanges. Singapore Airlines Cargo contributed 29.6 percent to the group’s operating profit.
The results showed a strong recovery from the first quarter loss of S$312 million due to decline of travel associated with the SARS epidemic.
The cargo division carried 2.4 percent less cargo (6.69 million ton-kilometers) than the previous year. A 7.3-percent increase in yield and a 3.8 percent reduction in unit costs resulted in the breakeven load factor dropping to 62.7 percent from 69.9 percent. That means that although SIA planes flew with 3.1 percent more unutilized capacity (cargo load factor of 66.5 percent), the airline still made money on its cargo operations.
During the fiscal year, SIA Cargo added one aircraft and now operates 13 B747-400 freighters. The airline said it will take delivery of its 14th 747-400 freighter in the 2004-05 fiscal year and add freighter flights to the United States via India and Europe, and to Europe via India.
Capacity by March 2005 is projected to be about 10 percent higher than in March 2004.