Singapore Airlines reports Q3 profit up by 6%

SINGAPORE- Singapore Airlines (SIA), one of the world's most respected airlines, reported on Thursday a net profit of 143 million Singapore dollars (115.5 million U.S. dollars) for the third quarter in Financial Year 2012-13 ending on Dec. 31. The result is up by six percent on a year-to-year basis.

"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 Singapore dollars (16.2 million U.S. dollars) provision by SIA Cargo in relation to air cargo civil penalty proceedings in respect of competition law matters in Australia and New Zealand." the group said in a statement.

In terms of operating profits, the figure slowed down to 131 million Singapore dollars (105.8 million U.S. dollars) during the period of last September to December, 17 percent lower than a year ago.

Meanwhile, group revenue fell marginally by 0.4 percent on year to 3.86 billion Singapore dollars (3.12 billion U.S. dollars), mainly from lower cargo revenue due to depressed yields and poorer loads.

Almost all the group's units, including SIA Engineering and SilkAir, saw operating profits up except the SIA Cargo.

Financial results for the three first quarters show however a decline in profits: During the April to December period, the group posted a net profit of 311 million Singapore dollars (251 million U.S. dollars), a decline of 17 percent from the corresponding period in the previous year.

"The outlook for international air travel demand continues to be challenging and the cargo market remains depressed amid the troubled European economy and the weak recovery in the United States," the group said in a statement, adding that a historical high for the price of jet fuel and the depreciation of revenue- generating currencies against the Singapore dollar will pose challenges in the future.

Sourced: TravelDailyNews