Home Airlines SIA net profit down, operating profit up

SIA net profit down, operating profit up

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Singapore Airlines sees mixed picture in Q3 results
Singapore Airlines reported a 1.7% rise in operating profit in its third quarter, to S$293 million (€194 million), but net profit fell 35.6% to S$177 million.
The stats for the three months ending December 31 were given a boost by falling net fuel costs, plus unexpected growth in cargo and mail. Net fuel costs declined $200 million, mainly due to a $256 million reduction in fuel hedging loss.
The company remains under pressure from weakening demand for full-service long-haul travel, as competition intensifies from low-cost and Middle Eastern carriers.
Operating profit at the main SIA brand fell 16.6% to S$151 million, was down 9.1% at the Silkair regional airline and was flat at low-cost subsidiaries Tiger Airways and Scoot.
The carrier said: “2017 is expected to be another challenging year amid tepid global economic conditions and geopolitical concerns, alongside other market headwinds such as overcapacity and aggressive pricing by competitors.”
Reuters

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