High fuel costs almost halve profits at Singapore Airlines

Nov 3, 2011, 11:50 GMT

Singapore - Singapore Airlines Ltd (SIA) on Thursday said its quarterly net profit almost halved largely as a result of soaring fuel costs.

Net profits for the second quarter of the financial year were 194.2 million Singapore dollars (152.4 million US dollars), down 49 per cent from 380.2 million Singapore dollars last year, the airline said.

Operating profit for the three months through September plunged 64 per cent year-on-year to 123 million Singapore dollars, while expenditure rose 9 per cent to 3.57 billion Singapore dollars on higher jet fuel prices, it said.

The airline said it spent 1.41 billion Singapore dollars on fuel in the second quarter, up from 1.09 billion a year earlier.

Quarterly group revenue grew 2 per cent year-on-year to 3.7 billion Singapore dollars, SIA said.

Singapore's flag carrier said advanced bookings, especially in Europe and the United States, were dampened by the prevailing economic uncertainties and weak consumer confidence.

'Exacerbating the impact of the weak outlook is the high cost of fuel, which is compounded by the recent strength in the US dollar,' the airline said.

'Forward prices for jet fuel remain high and volatile,' it added.