In the first year of its three-year transformation programme, SIA Group reported a net profit of $893m for the 2017/18 financial year ending 31^st March, an increase of $533m, or 148.1%, from the same period last year.

The increase was mainly attributable to a higher operating profit (+$434m), absence of SIA Cargo’s provision for competition-related matters (+$132m) and impairment of the Tigerair brand and trademarks (+$98m) last year, partially offset by the absence of SIA Engineering’s gain on divestment of its 10.0% stake in Hong Kong Aero Engines Services Ltd (HAESL) and special dividends received from HAESL (-$178m).

Operating profit for the Group soared 69.7%, to $1,1bn, on revenue of $15.8bn (+6.3%), with revenue improvements in all business segments. Passenger flown revenue rose $428m (3.6%), as traffic growth (+6.3%) outpaced the decline in passenger yield (-3.1%). Cargo revenue was up $266m on higher freight carriage (+5.3%) and yield (+8.9%).

Engineering services revenue grew $52m (+12.0%), largely attributable to line maintenance activities.

SIA also announced that its regional wing, SilkAir, is to undergo a significant investment programme to upgrade its cabin products as part of a multi-year initiative that will ultimately see it merged into SIA.

The programme will comprise investment of more than $100m to upgrade cabins with new lie-flat seats in Business Class, and the installation of seat-back in-flight entertainment systems in both Business Class and Economy Class. Aircraft cabin upgrades are expected to start in 2020.

The move follows the re-integration of SIA Cargo into the parent airline company on 1^st April.

SIA says that the next two years of the transformation programme will focus on enhancements to the customer experience, revenue growth and improvements in operational efficiency.