Singapore Air Profit Falls as One-Time Charges Mask Traffic Gain
Singapore Airlines Ltd. (SIA), Southeast Asia’s biggest carrier, posted a 65 percent decline in profit in the third quarter after charges relating to a cargo class action settlement masked an increase in passenger numbers.
Net income in the three months ended December dropped to S$50.1 million ($39 million), compared with S$142.5 million a year earlier, the carrier said in a statement today. Sales was little changed at S$3.87 billion.
Singapore Air’s settlement of a cargo class-action suit in the U.S. prompted a charge of about S$80 million in the quarter, in addition to losses from associated companies such as budget airline Tiger Airways Holdings Ltd. That dented gains from carrying more passengers, a demand-growth that has prompted Chief Executive Officer Goh Choon Phong to order $17 billion of new, fuel-efficient aircraft from Airbus Group NV and Boeing Co. (BA)
“The outlook for the air transportation industry continues to be challenging,” the carrier said in the statement.
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