Singapore Airlines (SIA) Cargo turned around a loss of S$45 million (US$33 million) last year to an operating profit of $32 million in the first half of the 2017/18 financial year.
The carrier says revenue improved $122 million as freight carriage growth of 6.1 per cent was further supported by a 6.7 per cent improvement in cargo yield.
Expenditure was up $45 million, partly due to higher handling costs from increased carriage and higher aircraft maintenance and overhaul costs. The cargo load factor rose by 3.2 percentage points to 64.8 per cent.
The SIA Group as a whole reported a net profit of $425 million in the first half of the 2017/18 financial year, $103 million (+32 per cent) higher than last year. Cargo revenue was up $123 million on higher freight carriage (+6.1 per cent) and yield (+6.7 per cent).
In the second quarter (Q2) alone, SIA Cargo reported an operating profit of $26 million, reversing its loss of $11 million (+$37 million) in Q2 last year. Revenue grew $65 million as freight carriage grew 5.4 per cent, further lifted by a 9.1 per cent improvement in cargo yield on the back of improved trade conditions.
Expenditure increased by $28 million, partially contributed by higher handling and aircraft maintenance and overhaul costs.
SIA Cargo operated a fleet of seven Boeing 747-400 Freighters as at 30 September 2017.
As for the future, SIA Cargo says it will continue to pursue charter opportunities and deploy capacity to match demand. Currently, its freighter network covers 19 cities in 13 countries, including Singapore.