On Tuesday (13 Nov), Singapore Airlines (SIA) reported a 69% drop in profits for the first half of this financial year. The carrier’s net profits between April and September stand at $196 million.
The Singapore Airlines Group, which includes Scoot and SilkAir, fared slightly better. Profits dropped 44% to $426 million.
Investors reacted quickly, with the airline’s shares dropping 1 per cent on Wednesday.
SIA chief Goh Choon Phong blamed fuel prices for the poor performance. At a briefing, he said,
Fuel price has been very volatile. Today, you saw how it has come down.
The carrier also blamed non-cash losses at Virgin Australia, which it partially owns.
Singapore Airlines is in the middle of an aggressive 3-year transformation plan to better compete against Middle Eastern carriers as well as low-cost airlines in the region.
But its own low-cost airline, Scoot, didn’t fare very well in the past quarter.
Between July and September, Scoot posted an operating loss of $11 million. In the same quarter last year, the airline made a $2 million profit.
Regional arm SilkAir flew more passengers but these figures weren’t enough to offset fuel prices. Like Scoot, SilkAir also posted a loss this past quarter.
Despite the discouraging quarter, SIA is confident that blue skies are approaching. Its new non-stop routes to Los Angeles, New York and Seattle make the carrier more attractive to business travellers.
Plans to cull the long-suffering SilkAir brand will also help the Singapore Airlines Group cut costs.
And with a view to the growing luxury travel market, SIA believes that its revamped cabin products will increase its profitability in the coming years.
Featured image from Instagram
Though stallholders had seen her there, none of them reported it to the authorities.
His cause of death is unknown.
The items covered the entire expanse of the corridor.
It never hurts to be prepared if you’re travelling to earthquake-prone regions.
SIA had offered 10,000 KrisFlyer miles each, but they turned down the offer.
Customers praised the stall for having good food at a cheap price.