. Space Industry and Business News .

Singapore Airlines 3Q net profit down 53 percent on-year
by Staff Writers
Singapore (AFP) Feb 2, 2012

Singapore Airlines said Thursday its third-quarter net profit tumbled 53 percent from a year ago due to the impact of "persistently high" jet fuel prices.

Weak passenger and cargo demand from Europe -- grappling with a debt crisis -- also dragged profits lower.

The airline, considered a bellwether for the industry, said net profit in the three months to December fell to Sg$135.2 million ($108.5 million) from Sg$288.3 million.

"The persistently high jet fuel prices had adversely affected the group's performance," the airline said in a statement.

Revenue rose one percent to Sg$3.88 billion, but overall expenditure climbed at a faster pace of 12 percent to Sg$3.72 billion.

Fuel expenses alone increased 33 percent during the quarter. Fuel accounted for 40 percent of the company's expenditure, which was up seven percentage points from the year before, SIA said.

The airline painted a bleak outlook for the fourth quarter.

"Forward bookings continue to show signs of weakness in the final quarter of the financial year due to uncertainty in the global economy and the protracted eurozone debt crisis," it said.

The global air cargo market will also be weak as forward-looking trade indicators show waning consumer demand in major developed countries, the airline said.

"Passenger yields are expected to remain under pressure while cargo yields are expected to continue to decline," it said.

"As the price of jet fuel remains high and volatile, fuel costs continue to adversely impact the group's financial performance."

Brendan Sobie, a Singapore-based analyst with the consultancy Centre for Aviation, said the fall in SIA's net profit was in line with that of other carriers.

"Generally, the situation with airlines is that the profitability has been going down and the outlook for this year is not very good, so it's all in line (with) that," he told AFP.

"These results are not too surprising given the market situation," said Sobie, citing high fuel prices and a decline in demand from Europe and Japan as the chief reasons for SIA's lower profit.

Sobie however noted that SIA's regional wing, SilkAir, had a narrower decline in its operating profit which he said reflect the continued strength of Asian economies.

Unlike SIA, SilkAir operates only to destinations within Asia -- except Japan.

"The only part of Asia that's been weak in the last few quarters has been Japan, where again SIA has heavy exposure," Sobie said.

Japan's tourism industry was impacted by a major earthquake and tsunami that struck the country in March last year. The disasters also sparked a nuclear meltdown at a power plant, raising fears of a radiation leak.

SIA's profit slump mirrors dismal performances by other regional airlines such as Japan's All Nippon Airways, which saw its net profit for the nine months to December slashed 10 percent year-on-year.

Flag carrier Korean Air as well as India's largest private carrier Jet Airways recorded net losses in their full-year and quarterly earnings, respectively -- a reversal from net profits experienced a year earlier.

Related Links
Aerospace News at SpaceMart.com

Get Our Free Newsletters Via Email
Buy Advertising Editorial Enquiries


. Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

Japan's ANA nine-month net profit down 10%
Tokyo (AFP) Jan 31, 2012
Japan's All Nippon Airways on Tuesday said its net profit for the nine months to December fell 10.0 percent from a year earlier due to an increase in corporate taxes. The carrier, which operated the maiden commercial flight of Boeing's 787 Dreamliner late last year, said group net profit in the period was 33.8 billion yen ($443 million), down from 37.5 billion yen a year earlier. Revenue ... read more

Smart paint could revolutionize structural safety

Samsung condemns 'anti-Iran' ad featuring its tablet

Green light for Malaysia rare earths plant

Malaysia plant threatens China grip on rare earths

Brazil to assemble Harris tactical radio

Northrop Grumman Wins Award for USAF Design and Engineering Support Program

Fourth WGS Satellite Sends First Signals from Space

Boeing to Build More Wideband Global SATCOM Satellites for USAF

Launch of Proton-M with Dutch Satellite Postponed

First Vega rocket assembled on launch pad

Ukraine, Russia to Launch 2 Dnepr Carrier Rockets in 2012

Russia Plans to Launch U.S. Satellite in February

ESA Director General praises UK space innovation

Lockheed Martin-Built GPS Satellites Reach 150 Years of Combined On Orbit Service

LED lights point shoppers in the right direction

Opening of UK site producing the heart of Galileo

Singapore Airlines 3Q net profit down 53 percent on-year

Snow and fog ground half of London Heathrow's flights

New Ideas Sharpen Focus for Greener Aircraft

Japan's ANA nine-month net profit down 10%

Jumpstarting computers with 3-D chips

Researchers Devise New Means For Creating Elastic Conductors

Cooling semiconductor by laser light

A new class of electron interactions in quantum systems

NASA's GCPEX Mission: What We Don't Know about Snow

NASA Finds 2011 Ninth-Warmest Year on Record

Satellite observes spatiotemporal variations in mid-upper tropospheric methane over China

NASA Sees Repeating La Nina Hitting its Peak

India's air the worst, says study

Eight executives detained in China pollution case

Chinese media blast officials over toxic river

China detains seven as water pollution fears widen


The content herein, unless otherwise known to be public domain, are Copyright 1995-2012 - Space Media Network. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement