This financial year could very well be the most profitable ever for Singapore Airlines, with the Group close to doubling its earnings during the first nine months of the year.
Last year, the company revealed a first half year net profit of $305 million – up $179 million on the corresponding period 2014/15.
The Group has now welcomed a 95.9 percent year-on-year growth in operating profits during the three month period from October-December 2015 of $288 million – a HUGE jump from $147 million the prior year.
The latest jump in profits brings the company’s earnings for the first nine months of the 2015/16 year to $528 million – up from $317.5 million.
Here comes the big question – what on earth did Singapore Airlines do?
Firstly the airline carried around 513,000 more passengers in the nine months compared to the same nine months the prior year.
This growth in passengers came through new services (such as extra flights to Brisbane); high customer satisfaction rates, which keeps them coming back; and the well received introduction of Premium Economy on select flights (Melbourne and Sydney).
But that’s not all.
Latest figures show the carrier’s net fuel costs dropped by around AU$352 million during the third quarter alone.
What?!
Yep, during the three month period, jet fuel price dipped by around 41.1 percent for the carrier.
This decrease in fuel costs heavily contributed to the 7.6 percent drop in group expenditure, which in turn helped the airline bring up its nine month profits.
Of the Group’s other airlines, Scoot saw the biggest increase in profits – from -$17 million to a surplus of $18 million during the third quarter 2015/16.
Late last year, Singapore Airlines said it would look at new ways to expand its business in key markets, including Australia which would include launching the first international flight out of Australia’s capital, Canberra.