Singapore Airlines Q2 net drops 49pc as fuel costs soar
SINGAPORE, Nov 3 — Singapore Airlines Ltd (SIA), the world's second largest carrier by market value, reported today a 49 per cent drop in second quarter net profit due to high jet fuel prices and said yields will remain under pressure.
The airline, about 55 per cent owned by Singapore state investor Temasek Holdings , earned S$194 million (RM475.18 million) for the three month ended September compared to S$380 million a year ago.
Its quarterly earnings came largely in inline with the average forecast of S$194.8 million by four analysts polled by Reuters.
SIA said fuel costs rose 35 per cent in the first half from a year ago to S$747 million and cut its interim dividend to 10 Singapore cents from 20 cents previously.
The global airlines industry, which only recovered from its worst-ever downturn last year, is facing new headwinds such as rising jet fuel prices and economic uncertainties in Europe and United States.
The International Air Transport Association (IATA) recently raised its 2011 profit forecast for the airline industry to US$6.9 billion (RM21.54 billion) from US$4.0 billion, but the grouping expects the industry's profit to fall by 29 percent next year. — Reuters