SIA Cargo, the freight arm of Singapore Airlines, has successfully turned the tables on its 2016-17 first-half loss of S$45m, posting an operating profit of S$32m for the same period of the 2017-18 financial year.
The carrier attributed the result to higher volumes (up 6.1% year on year) as well as improved yield (up 6.7% year on year), particularly on the back of improved trade conditions in the second quarter. The cargo load factor increased by 3.2 percentage points over the first half of 2016, to 64.8%.
At the same time, SIA Cargo noted that outgoings were also higher, “partly due to higher handling costs from increased carriage and higher aircraft maintenance and overhaul costs”.
A statement said: “Headwinds remain as competitors mount significant capacity in key markets. Yields continue to be under pressure, despite some stabilisation in recent months,” and fuel prices are expected to remain volatile.