Singapore Airlines Group Q1FY2019 performance impacted by increased fuel costs

Singapore Airlines Group reported (26-Jul-2018) operating performance was adversely impacted by increased net fuel costs in Q1FY2019, despite a SGD178 million (USD130.5 million) increase in passenger and cargo revenue. Net fuel costs increased by SGD154 million (USD112.9 million), driven by a 39.3% year-on-year increase in the average jet fuel price. Group expenditure increased 5.6%, led by fuel costs. Fuel costs before hedging increased by SGD312 million (USD228.8 million), however half of the increase was alleviated by hedging gains. The group hedged 46.3% of fuel requirements for the remainder of FY2019. Non fuel costs increased 1.5%, partly due to expansion by Scoot and SilkAir. The group expects passenger traffic to grow in the coming months, although competition persists in key markets. Costs remain under pressure, especially from higher fuel prices. Near term cargo demand is steady, despite concerns over global trade tensions. [more - original PR]