SIA Q2 profits dip, projects weak demand for coming quarter

Singapore Airlines reported a S$323.8 million ($219.4 million) profit for fiscal Q2, ended 30 September, a 32.6% decrease over the S$507.8 million earned in the year-ago period. The world's premier airline said global "financial turmoil" and "weak consumer confidence" had impacted demand.

Though advance bookings in the current quarter "are holding up reasonably well," the airline said it saw "signs of weakness beyond that." It pointed out that sound finances and a low level of debt would allow it to maintained a position of strength.

Though fiscal Q2 revenue went up 10.4% year-over-year, to S$4.38 billion, it failed to keep pace with a 20.3% rise in expenses which soared to S$4.15 billion. Operating profit was down 55.3%, to S$231.7 million.

Passenger numbers went up 1.4% to 4.9 million even as load factor dipped 2.5% to 79.1%.

During the first half of its fiscal year SIA took delivery of three A380-800s and four 777-300ERs even as it decommissioned four 747-400s. Its operating fleet as of 30 September comprises 14 747-400s, 76 777s, five A340-400s and six A380-800s.

Operating profit for the first half was down 41.4%, to S$574.9 million, even as fuel costs jumped 66.3%. The cargo division reported a S$76 million loss, a turnaround from a S$19 million profit.