Singapore Airlines profit fell 17% to $131m

The group’s revenue was also lackluster.

In a release, the SIA Group announced that it recorded an operating profit of $131 million in the third quarter of the 2012-13 financial year, $26 million (-17%) lower than a year ago. 

Group revenue fell marginally by $15 million (-0.4%), mainly from lower cargo revenue due to depressed yields (-3.5%) and poorer loads (-10.0%). On the other hand, passenger revenue improved as promotional activities boosted Group passenger carriage by 7.8%, partially offset by lower yields (-5.7%).

Group expenditure rose by $11 million (+0.3%) to $3,729 million, largely owing to higher staff and variable costs, partly mitigated by a higher fuel hedging gain.

Group net profit for the third quarter was $143 million, $8 million (+6%) higher year-on-year despite recording lower operating profit. This is due to an increase in non-operating items from surplus on the sale of aircraft, spares and spare engines, and higher net interest income, partially offset by a $20 million provision by SIA Cargo in relation to air cargo civil penalty proceedings in respect of competition law matters in Australia and New Zealand.