The world’s second-largest carrier by market value, Singapore Airlines was hit by its first and unexpected loss since the second quarter of 2009-2010: Q1 results show net loss at S$38.2 million ($30.5 million) compared with a profit of S$171 million a year earlier.
While high fuel prices pushed expenses up, earnings came down due to the disposal of the carrier’s last B 747-400. Revenues rose 3.3 per cent from a year earlier to S$3.71 billion but there was an 8.5 per cent rise in expenditure. Fuel costs rose to S$1.45 billion in the fiscal fourth quarter from S$1.24 billion in the same quarter a year earlier. Cargo yields were likely to remain stagnant in the next quarter but air freight demand will be slow and will possibly be seen only in the second half of the year, the carrier pointed out.