Singapore Airlines (SIA) saw its net profit dive by 69 percent in the fiscal year ended March 31, 2012, which it blamed on high fuel prices and weak cargo demand.
The Singapore national carrier reported that its net profit slipped to US$268 million for the fiscal year from $604 million the previous year, even though revenues rose 2 percent year-over-year to $12 billion.
The airline, which is often regarded as a bellwether for the aviation industry, also recorded a surprising net loss of $30 million in the fourth quarter ended March 31, 2012, only the third quarterly loss in its history, compared with a profit of nearly $136 million for the same period a year earlier.
SIA said group expenses went up by 10 percent to $1.3 billion on a 32 percent hike in jet fuel costs for the year compared to the same period a year ago.
“Fuel prices are expected to remain at high levels, which will adversely impact the group’s operating performance,” the company said in a statement.
It added that it expects air freight demand to make a gradual recovery, likely to occur only in the second half of the year. Cargo yields are seen to remain stagnant for the next quarter.
The carrier, the world’s no. 2 by market value, said it will focus on flights to smaller Asian cities as a weak global economy dampens demand on long-haul routes and competition from other airlines grows tighter.
Photo: eosdude
