Singapore Airlines' maintenance division generated an operating profit of S$18.1 million ($13.3 million) during its first quarter ended 30 June, down a little before the impact of one-off items in the corresponding period last year.
The profit did represent a return to profit compared with a S$1.6 million loss in the same period last year - which was attributed by the MRO provider to an increase in staff costs as a result of the sale of its stake in Hong Kong Aero Engine Services. Operating profit excluding the divestment impact was down 8%.
By contrast the group's net profit declined to S$36.2 million from S$198.4 million when including the gains from the stake divestment in 2016. But if effects of the stake sale are excluded, net profit slipped only slightly from S$38 million on a like-for-like basis.
SIA Engineering says this year's second-quarter revenue came in at S$272.8 million, a fractional increase from S$271.6 million a year ago.
Expenditure was shrunk by 6.8% to $255 million.
"The operating environment for the MRO industry remains challenging," notes SIA Engineering. "Notwithstanding this, the group has continued to pursue expansion opportunities for sustainable long-term growth."
At the Paris air show in June, SIA Engineering disclosed plans for an overhaul venture with General Electric to service that manufacturer's engines.
It was also during the quarter ended 30 June that SIA Engineering opened a wholly owned line maintenance subsidiary in Osaka, Japan.
Source: Cirium Dashboard
