SIA’s cargo division continues to face weak demand

High passenger volumes bring in profits

cargo cargo business first quarter operating loss passenger volumes profit SIA Singapore Airlines weak demand

Singapore Airlines earned first quarter profits primarily due to high passenger volumes: Net profit was $62 million (Sg$78 million) for the quarter ended June 2012, compared with $35 million (Sg$45 million) last year.

On the cargo front, however, there was continued weakness in demand exerting downward pressure on cargo loads and eroding yields, according to the press release from the airline. Result: SIA Cargo’s operating loss for the first quarter widened by $27 million (Sg $35 million) to $38.8 million (Sg $49 million). The carrier has projected a weak outlook for the cargo business mentioning it faced pressure as regards demand and yields.