Singapore Airlines Ltd on Tuesday reported an 81 percent plunge in second-quarter earnings, hurt by higher fuel prices, lower airfares and non-cash losses at its part-owned Virgin Australia Holdings Ltd. <\/p>\n
The airline said bookings in the coming months were expected to be stronger year-on-year.<\/p>\n
“However, headwinds continue to persist in the form of cost pressures arising from significantly elevated fuel prices compared to a year ago, as well as keen competition in key operating markets,” Singapore Airlines said in a statement.<\/p>\n
The carrier, a benchmark for Asia’s premium airline industry, posted a net profit of S$56 million ($40.5 million) for the quarter ended Sept. 30, down from S$293 million a year earlier. The prior-year figure was restated due to accounting changes.<\/p>\n
Excluding the S$116 million loss relating to its 20 percent stake in Virgin Australia, the company reported an adjusted net profit of S$172 million, down 41 percent from a year earlier.<\/p>\n
Group revenue rose 5.4 percent to S$4.06 billion during the quarter as the airline added capacity and filled a higher proportion of seats.<\/p>\n
However, yields, a proxy for ticket prices, fell 2.2 percent in the second quarter compared with a year earlier, failing to help offset the impact of a 24 percent rise in fuel prices.<\/p>\n
That yield decline was less steep than a first-quarter decrease of 3.2 percent but bucks a broader global industry trend toward rising fares, including at regional rivals like Hong Kong’s Cathay Pacific Airways Ltd and Australia’s Qantas Airways Ltd.<\/p>\n
Singapore Airlines is in the second year of a three-year transformation plan designed to cut costs and boost revenue. It plans to merge regional arm SilkAir into its main brand after 2020.<\/p>\n
Its low-cost carrier Scoot, which raised fares by around 5 percent from Sept. 1 in reaction to higher oil prices, swung to an S$11 million operating loss during the second quarter from a S$2 million profit a year earlier as fuel and expansion costs outpaced revenue growth.<\/p>\n
Singapore Airlines’ management team will hold a detailed briefing for investors and media on Wednesday.<\/p>\n
The airline’s shares, which fell 1.8 percent on Tuesday, have fallen by 11.7 percent since January.<\/p>\n","protected":false},"excerpt":{"rendered":"
Singapore Airlines Ltd on Tuesday reported an 81 percent plunge in second-quarter earnings, hurt by higher fuel prices, lower airfares and non-cash losses at its part-owned Virgin Australia Holdings Ltd. The airline said bookings in the coming months were expected to be stronger year-on-year. “However, headwinds continue to persist in the form of cost pressures arising from significantly elevated fuel prices compared to a year ago, as well as keen competition in key operating markets,” Singapore Airlines said in a statement. The carrier, a benchmark for Asia’s premium airline industry, posted a net profit of S$56 million ($40.5 million) for […]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[229],"tags":[],"class_list":["post-189716","post","type-post","status-publish","format-standard","hentry","category-civil-aviation"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/189716","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=189716"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/189716\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=189716"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=189716"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=189716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}