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Singapore Airlines lifts 2016 profit in NZ

NZ NewswireNZ Newswire 29/09/2016 Sophie Boot

Singapore Airlines A380 plane © Getty Images Singapore Airlines A380 plane The New Zealand branch of Singapore Airlines lifted annual profit by 63 per cent as cheap jet fuel helped the airline fatten margins while reaping smaller passenger revenues.

Net profit rose to $7.9 million in the 12 months ended March 31, from $4.8m a year earlier, Singapore Airlines NZ's financial statements lodged with the Companies Office show.

Revenue, which is almost entirely attributable to passengers, dropped 12 per cent to $175.8m, while expenditure fell 14 per cent to $168m.

The NZ company's fuel bill dropped 25 per cent in 2016 to $53.6 million as the price of crude oil fell, reaching 12-year lows in February.

A global glut of oil, driven by increased supply from the US, Canada, Iraq and the Organisation of Petroleum Exporting Countries and slower demand from China drove the price of crude 75 per cent down from its levels of mid-2014.

The accounts show Singapore Airlines cut "other operating expenses" in New Zealand such as depreciation, handling charges, aircraft rentals, parking charges and the cost of in-flight meals to $89.8m from $95m in 2015.

The airline's landing, parking and over-flying charges shrank to $8.8m from $9.5m.

Singapore Airlines doesn't pay income tax in New Zealand under the 2009 Double Taxation Agreement between the New Zealand and Singaporean governments.

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