Singapore Airlines Cargo made an operating profit of S$3.1 million (US$2.2 million) in the 2016-2017 financial year, compared to an operating loss of S$50 million (US$36 million) a year ago, according to annual results released by the SIA Group.
Cargo revenue from April 1, 2016 to March 31, 2017 fell S$89 million year-on-year to S$1.96 billion (US$1.4 billion), and SIA Cargo made an overall loss of S$127 million (US$92 million) for the financial year.
However, SIA Cargo carried 1.25 million tonnes of cargo and mail during the year, a 6.7% year-on-year increase. Load factor grew by 1.3 percentage points to 63.2%.
In order to improve efficiency, the SIA Group announced that SIA Cargo would be reintegrated as the cargo division of SIA in the first half of 2018.
According to SIA, there will be no change to operations. During the financial year, SIA Cargo removed two Boeing 747-400Fs from service and returned them to their lessors. Seven 747-400Fs remain in the fleet and will continue to be operated. The cargo division will also continue to manage the passenger belly capacity for Singapore Airlines and subsidiaries SilkAir and Scoot.
“Reintegrating SIA Cargo as a division within Singapore Airlines makes sense from a business standpoint,” said Choon Phong Goh, CEO of SIA. “It will improve efficiency and offer greater flexibility for staff deployment by maximizing synergies with the larger SIA business. Importantly, the cargo division will continue to provide high-quality products and services that customers have come to expect from SIA Cargo. Cargo remains an important part of our business, and we remain committed to operating a fleet of dedicated freighter aircraft to carry specialized cargo and provide feed to the overall SIA Group network.”
SIA Cargo has approximately 900 employees, the majority of which will be retained. Some will be transferred to other SIA divisions.
SIA Cargo became a separate company of the SIA Group on July 1, 2001. It was in the process of growing its fleet to up to 17 747-400Fs and was better suited to carry out its expansion as a standalone cargo airline, according to SIA.
