SIA still fears overcapacity
Carrier back in the black, but still has concerns
Singapore Airlines (SIA) said it remained concerned about the threat of excess air freight capacity and weaknesses in the global economy, despite a return to profit in the quarter ending 31 December.
The SIA group returned a net profit of S$404m (US$287m) in the quarter, following losses of S$307m in the previous period. The company grew revenue by 10.9% to S$3.42bn and made cost savings on fuel hedging and payroll.
SIA Cargo posted an operating profit of S$40m, compared with a loss of S$46m a year earlier.
Both passenger and cargo yields improved during the quarter, but the cargo gains were described by the company as “more tentative”, because of excess freighter capacity and the “unidirectional nature of cargo flows”.
A statement said: “The business outlook for the group in 2010 is encouraging, but it must be acknowledged that uncertainties linger over the global economy.”
The SIA group returned a net profit of S$404m (US$287m) in the quarter, following losses of S$307m in the previous period. The company grew revenue by 10.9% to S$3.42bn and made cost savings on fuel hedging and payroll.
SIA Cargo posted an operating profit of S$40m, compared with a loss of S$46m a year earlier.
Both passenger and cargo yields improved during the quarter, but the cargo gains were described by the company as “more tentative”, because of excess freighter capacity and the “unidirectional nature of cargo flows”.
A statement said: “The business outlook for the group in 2010 is encouraging, but it must be acknowledged that uncertainties linger over the global economy.”
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