Singapore Airlines’ profit plunges 59%
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Singapore Airlines saw net profit in the July-to-September quarter plunging 59% year-on-year to SGD290 million (US$) amid intense competition and surging costs.
Revenue rose 2% to SGD4.8 billion in the second quarter of its financial year which began April, the company said in a financial report. It saw costs rising by 14.7 percent over the period.
“The operating landscape will continue to be competitive,” the airline said. “The group will remain nimble and agile, adjusting its passenger network and capacity to match evolving demand patterns.”
Singapore Airlines operates a fleet of 205 aircraft, with four Boeing 787-10 aircraft added in the July-September quarter.
It has been increasing number of flights to popular destinations such as Hanoi, HCMC, Johannesburg, Melbourne, Phuket and Seoul.
The airline is also investing SGD1.1 billion to upgrade its premium travel experience by installing long-haul cabins in 41 Airbus wide-body aircraft.
Questions & Answers
Q.What is the main reason given for Singapore Airlines' significant profit drop?
What is the main reason given for Singapore Airlines' significant profit drop?
The airline's net profit plunged due to intense competition in the market and surging operating costs. These factors directly impacted their financial performance in the July-to-September quarter, despite an increase in revenue.
Q.How did Singapore Airlines' costs change compared to its revenue during this period?
How did Singapore Airlines' costs change compared to its revenue during this period?
While revenue increased by 2% to SGD4.8 billion in the July-to-September quarter, the company's costs rose significantly higher, by 14.7% over the same period. This disparity contributed to the profit decline.
Q.What specific actions is Singapore Airlines taking to address challenges and improve its services?
What specific actions is Singapore Airlines taking to address challenges and improve its services?
Singapore Airlines is adjusting its passenger network and capacity to match demand patterns. It is also investing SGD1.1 billion to upgrade its premium travel experience by installing new long-haul cabins in 41 Airbus wide-body aircraft.
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