SIA 2Q profits plummet by 70% to $65m

Only budget carriers reported stronger performance.

Singapore Airlines (SIA)'s net profit during the second quarter was $65 million, or $149 million lower than the second quarter last year.

The management said that on top of weaker operating results, lower dividends from long-term investments (-$88 million), Scoot's impairment on 777-200 aircraft (-$21 million), and weaker results from associated companies (-$18 million) added to the headwinds.

Only budget carriers reported stronger performance.

Singapore Airlines (SIA)'s net profit during the second quarter was $65 million, or $149 million lower than the second quarter last year.

The management said that on top of weaker operating results, lower dividends from long-term investments (-$88 million), Scoot's impairment on 777-200 aircraft (-$21 million), and weaker results from associated companies (-$18 million) added to the headwinds.

SIA's operating profit for the second quarter declined $20 million to $109 million (-15.5%), as the $174 million fall in expenditure was insufficient to cushion the $194 million reduction in revenue.

Most companies in the Group recorded weaker operating results amid a sluggish global economy.

SIA Cargo reported an $11 million loss  while SIA Engineering's operating profit fell 7.4% to $25 million.

However, Scoot and Tiger Airways registered improvements year-on-year as the low-cost carriers continued to perform better on the back of an extended network and reduced operating expenditure. They registered operating profits of $5 million and $3 million respectively from losses a year ago.