Singapore Airlines has reported an 82% slump in net income to S$44.7 million ($37 million) in the three months ended June. Shares fell as much as 9.3% on the news – the most on an intraday basis since March 15.
SIA’s main flying unit and its cargo business both posted operating losses owing to a 46% increase in fuel prices. Passenger load factor was also down for the 11th straight month in June on a year-on-year basis. SIA made an operating loss of S$36 million in the fiscal first quarter, compared with a profit of S$136 million a year earlier. The cargo unit had a S$14 million loss.
However it was not all bad news. Regional carrier SilkAir posted a S$21 million operating profit for the first quarter and its engineering arm had a S$35 million profit. Fuel costs were up for the airline to 27% to S$1.44 billion, accounting for 40% of overall expenditure but SilkAir had a fuel-hedging gain of S$12 million compared with a S$78 million loss a year earlier.
