Singapore Airlines

Singapore Airlines

Postby winston » Fri May 09, 2008 11:10 am

From UOB:-

Latest fuel surcharge offsets just a third of fuel cost increase.

SIA has announced the third consecutive fuel surcharges for the year as Jet Kerosene prices continue to rally. Spot Jet Kerosene prices have risen by US$18 to US$143 since the previous fuel surcharge increase in March. We estimate the latest increase will offset about US$6.00, or a third of the increase since March.

The current fuel surcharge policy is steered towards passing 50% of fuel costs to passengers. Given that demand for airline travel is highly sensitive to prices, the airline's ability to pass on further surcharges could be limited as this could have a direct knock-on effect on demand, especially for shorter haul routes.

We are reviewing our recommendation for SIA given the escalating fuel costs and on expectation of a decline in discretionary spending leading to lower yields.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 108837
Joined: Wed May 07, 2008 9:28 am

Re: SIA

Postby kazataza » Fri May 09, 2008 3:41 pm

i understand that despite the rising fuel cost, SIA total profit for the past 3 quarter (Apr-Oct'07) is already more than the total profit for FY06/07.

Note that for FY06/07, there's "extraordinary gains such as the sale of the SIA Building at Robinsons Road.

If my guess it not wrong, the announcement for the year should be a good one
User avatar
kazataza
Loafer
 
Posts: 81
Joined: Thu May 08, 2008 3:29 pm

Re: SIA

Postby winston » Tue May 13, 2008 11:23 pm

Singapore Air Profit Falls on Lack of One-Time Gains (Update2)

By Chan Sue Ling

May 13 (Bloomberg) -- Singapore Airlines Ltd., the world's second-largest carrier by market value, reported a 21 percent decline in fourth-quarter profit as a one-time gain a year earlier masked contributions from higher passenger traffic.

Net income fell to S$527.5 million ($385 million) in the quarter ended March 31 from S$671.3 million a year earlier, the company said in a statement today. Operating profit, or sales minus the cost of goods sold and administrative expenses, rose 40 percent. Sales increased 12 percent to S$4.11 billion.

Singapore Air posted its highest annual operating income in at least 18 years and carried a record number of passengers after Chief Executive Chew Choon Seng introduced the Airbus SAS A380 superjumbo. The airline's advantage as the first operator of the world's largest commercial jet helped it to raise fares to cushion rising fuel costs.

``Singapore Air has always been able to match capacity to demand and the A380 has helped them,'' said Steven Lim, who helps manage about $300 million at Daiwa SB Investments in Singapore. ``But this year, it will be difficult for them to repeat what they have achieved because they are operating in a slower growth environment. This year will be tough.''

Airlines globally may post a combined profit of $4.5 billion this year on higher fuel costs and a slowing U.S. economy, the International Air Transport Association said April 1. That's 20 percent lower than the $5.6 billion earned in 2007, according to the Geneva-based group.

Fuel Costs

``Jet fuel prices, in step with crude oil prices, look set to stay well above $100 per barrel this year,'' the carrier said in a statement today. ``The combination of a global economic slowdown and record high fuel prices will make this a more challenging year for airlines.''

Singapore Air, which hedges part of its fuel requirements and imposes a ticket levy to help counter the higher costs, spent S$1.29 billion on fuel in the quarter, 14 percent more than the year earlier. Fuel accounted for 35 percent of total costs in the three months.

Jet kerosene prices reached a record $160.25 a barrel yesterday, topping five consecutive quarters of gains, according to Bloomberg data.

``This is not a good time for airlines,'' said Winson Fong, who manages about $600 million at SG Asset Management in Hong Kong. ``We haven't seen the worst of the global economic slowdown, while costs have gone up.''

Singapore Air added 0.6 percent to S$15.76 as of 5:05 p.m. close of trading in the city-state today. The earnings were released after the market closed.

Full-Year, Dividend

The carrier posted a net profit of S$2.05 billion for the 12 months ended March, a 3.7 percent slide from the year before. Operating profit climbed to S$2.12 billion, the highest in at least 18 years, according to Bloomberg data.

Profit in the year before included S$667.7 million of one- time gains from the sale of assets, a stake in an aircraft leasing company and write-back of tax provisions.

Singapore Air carried a record 19.1 million passengers last fiscal year, 4.2 percent more than the year before. Full-year passenger yield, or average revenue per seat, climbed to 12.1 cents per kilometer from 10.9 cents.

The carrier filled 80.3 percent of seats last year compared with 79.2 percent a year earlier.

The company plans to pay a final dividend of 80 cents a share, taking the total payout for the year to S$1.

Superjumbo

Meanwhile, Singapore Air said today it may be affected after Airbus said it will deliver fewer A380s for three years.

``We are now waiting to hear from them in detail about what the changes to their production schedule mean for deliveries of our aircraft down the line,'' Stephen Forshaw, a Singapore Airlines spokesman, said in an e-mailed response to questions.

The airline began services with the double-decker A380 in October and now flies its three aircraft to London and Sydney. The fourth will fly to Tokyo and the fifth will arrive by early July, the carrier has said. First-class travel in the aircraft, fitted with suites and double beds, are 20 percent more expensive than other planes in its fleet.

To sustain profits, Singapore Air, is introducing all business-class flights to Los Angeles and Newark, New Jersey. The 18-hour flight will have 100 business-class seats from mid-May. Singapore Air gets 40 percent of its revenue from business-class travelers.

Singapore Air will temporarily fly the double-decker A380 on one of its three daily flights to Beijing in early August due to demand ahead of Olympic Games.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 108837
Joined: Wed May 07, 2008 9:28 am

Re: SIA

Postby winston » Fri May 23, 2008 4:22 pm

SIA bought 100,000 shares at $15.86 each.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 108837
Joined: Wed May 07, 2008 9:28 am

Re: SIA

Postby kennynah » Fri May 23, 2008 5:11 pm

W : u mean SIA as a company bought their own shares???and only 100lots?

or do u mean u just bought 100Lots for yourself? :shock:
Options Strategies & Discussions .(Trading Discipline : The Science of Constantly Acting on Knowledge Consistently - kennynah).Investment Strategies & Ideas

Image..................................................................<A fool gives full vent to his anger, but a wise man keeps himself under control-Proverbs 29:11>.................................................................Image
User avatar
kennynah
Lord of the Lew Lian
 
Posts: 18582
Joined: Wed May 07, 2008 2:00 am
Location: everywhere.. and nowhere..

Re: SIA

Postby blid2def » Fri May 23, 2008 5:31 pm

Or SIA bought 100 lots from winston. :mrgreen:
blid2def
Permanent Loafer
 
Posts: 2477
Joined: Tue May 06, 2008 7:03 pm

Re: SIA

Postby winston » Fri May 23, 2008 8:20 pm

kennynah wrote:W : u mean SIA as a company bought their own shares???and only 100lots?



Yes, they bought back 100,000 shares. Maybe right at the end, to bump the price up a bit :P
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 108837
Joined: Wed May 07, 2008 9:28 am

Re: SIA

Postby kennynah » Fri May 23, 2008 8:46 pm

W : ic... 100Lots...sub sub water for them la...it only goes to show how illiquid this counter is...100Lots can sustain its price and maybe even move it... :roll:
Options Strategies & Discussions .(Trading Discipline : The Science of Constantly Acting on Knowledge Consistently - kennynah).Investment Strategies & Ideas

Image..................................................................<A fool gives full vent to his anger, but a wise man keeps himself under control-Proverbs 29:11>.................................................................Image
User avatar
kennynah
Lord of the Lew Lian
 
Posts: 18582
Joined: Wed May 07, 2008 2:00 am
Location: everywhere.. and nowhere..

Re: SIA

Postby iam802 » Sun May 25, 2008 12:32 pm

maybe mgnt performance is being review now and one of the KPI is to hit share price at $X dollars
1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

TA and Options stuffs on InvestIdeas:
The Ichimoku Thread | Option Strategies Thread | Japanese Candlesticks Thread
User avatar
iam802
Big Boss
 
Posts: 7271
Joined: Wed May 07, 2008 1:14 am

Re: SIA

Postby kazataza » Mon May 26, 2008 11:07 am

if i'm not wrong, the share buy-back is meant to be used as Treasury stocks, which will subsequently be used for staff stock options
User avatar
kazataza
Loafer
 
Posts: 81
Joined: Thu May 08, 2008 3:29 pm

Next

Return to S to T

Who is online

Users browsing this forum: No registered users and 2 guests

cron