SINGAPORE: Singapore Airlines sees profits plunge 92%

Singapore Airlines (SIA) said its January-March profit plunged 92 per cent as the global economic slowdowndepressed passenger and cargo movements. The carrier’s net profit for its fiscal fourth quarter was S$41.9 million (US$28.7 million), down from S$528 million a year earlier, it said in a statement. That took the net profit for the whole year […]


Singapore Airlines (SIA) said its January-March profit plunged 92 per cent as the global economic slowdowndepressed passenger and cargo movements.

The carrier’s net profit for its fiscal fourth quarter was S$41.9 million (US$28.7 million), down from S$528 million a year earlier, it said in a statement. That took the net profit for the whole year to S$1.06 billion, down 48 per cent from the previous year.

The company’s cargo division, SIA Cargo, booked a loss of S$245 million, reflecting the depressed global air cargo market. SIA Cargo made a profit of S$132 million in the previous year.

In 2008, it carried 7.3 billion tonnekms compared with 8 billion tonne-kms the previous year, while load factors also declined from 62.2 per cent to 59.4 per cent.

Group revenue for the quarter fell 19 per cent to S$3.3 billion for the quarter while expenditures dropped 8 per cent to S$3.3 billion. A collapse in oil prices reduced spending on fuel by S$666 million, but losses from hedging soared to S$543 million.

“Advance bookings indicate that the drop in demand for air travel is leveling out,” the company said. “However, the probability of a sustained recovery has been set back by uncertainties arising from the Infl uenza A epidemic.”