Singapore Airlines reports big jump in profits

AFP, SINGAPORE: Singapore Airlines said Tuesday second-quarter net profit almost tripled due to passenger growth and improvements in its cargo business, but warned of challenges ahead.

The flag carrier said it earned Sg $190 million ($139 million) in the three months to the end of September compared to Sg $65 million in the same period last year.

The airline, seen as a benchmark for Asian premium carriers, has been battling strong competition from Asian low-cost carriers and Middle Eastern airlines, which now boast modern fleets and top-quality inflight services.

It has launched a wide-ranging review and in August offered cabin crew unpaid leave as a cost-cutting measure.

Announcing the results, the company said in a statement that “headwinds remain as competitors mount significant capacity in key markets. Yields continue to be under pressure, despite some stabilisation in recent months.”

Singapore Airlines also includes regional carrier SilkAir and low-cost airline Scoot.

Most of the profit came from the flagship full-service airline, with passenger numbers increasing by 2.3 per cent in the second quarter. The carrier’s operating profit rose to Sg $232 million, up sharply from the same period the year before.

This was largely due to lower operating costs and using more fuel-efficient planes.

 

Singapore Airlines reports big jump in profits

AFP, SINGAPORE: Singapore Airlines said Tuesday second-quarter net profit almost tripled due to passenger growth and improvements in its cargo business, but warned of challenges ahead. The flag carrier said it earned Sg $190 million ($139 million) in the three months to the end of September compared to Sg $65 million in the same period last year. The airline, seen as a benchmark for Asian premium carriers, has been battling strong competition from Asian low-cost carriers and Middle Eastern airlines, which now boast modern fleets and top-quality inflight services. It has launched a wide-ranging review and in August offered cabin crew unpaid leave as a cost-cutting measure. Announcing the results, the company said in a statement that headwinds remain as competitors mount significant capacity in key markets. Yields continue to be under pressure, despite some stabilisation in recent months. Singapore Airlines also includes regional carrier SilkAir and low-cost airline Scoot. Most of the profit came from the flagship full-service airline, with passenger numbers increasing by 2.3 per cent in the second quarter. The carriers operating profit rose to Sg $232 million, up sharply from the same period the year before. This was largely due to lower operating costs and using more fuel-efficient planes.