Singapore Airlines reports operating loss in latest quarter

Singapore Airlines reported an operating loss of 60.3 million Singapore dollars (48.2 million U.S. dollars) in the fourth quarter of its financial year ended March 31, the company said on Thursday. This is in comparison with a loss of 44.2 million Singapore dollars in the fourth quarter of the previous financial year. Its net profit for the latest quarter was 27 million Singapore dollars, buoyed by a one-time gain of 19.8 million Singapore dollars from a stake sale, but it was sharply lower than the net profit of 68.3 million Singapore dollars for the same quarter a year ago. In the quarter, the revenue of the industry's leading airline fell around 1 percent to 3.63 billion Singapore dollars. For the financial year ended March 31, the company booked a net profit of 359.5 million Singapore dollars, down 5.4 percent year on year. The group had an operating profit of 259 million Singapore dollars in the financial year, up 13.1 percent year on year. Its revenue increased 1 percent to 15.2 billion Singapore dollars, mainly due to higher passenger revenue, which was partially offset by a decline in cargo revenue. The average jet fuel prices decreased by 5.2 percent year on year. The decrease in the full-year net profit was mainly due to exceptional items and weaker share of results from associated companies, including losses of 118 million Singapore dollars from its stake in Tiger Airways Holdings Limited. Tiger Airways contributed a loss of 19 million Singapore dollars in the previous financial year. Singapore Airlines said the operating environment ahead continues to be challenging with intense competition in many areas and economic uncertainty in key markets. Passenger bookings in the current quarter are expected to match the planned increase in capacity, but the yields expected to remain under pressure due to promotional activities undertaken to support loads, and other airlines offering aggressive fares while increasing capacity.