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.
To contact the reporter on this story: Kyunghee Park in Singapore at email@example.com
To contact the editor responsible for this story: Anand Krishnamoorthy at firstname.lastname@example.org