Singapore International Airlines' Q1 profit dips 15 per cent on fuel costs
28 Jul 2008
Singapore: Leading global airline, and Asian heavyweight, Singapore Airlines, reported a 15 per cent dip in Q1 profits mainly on account of costlier jet fuel. However, earnings from partner firms helped it beat street estimates.
It share of profits from partner airline, low cost carrier, Tiger Airways, aircraft engineering and maintenance firms, and other aviation-related companies, stood at S$89.6 million ($65.7 million), which vastly outpaced similar earnings from a year ago. These had amounted to S$25.9 million then.
According to industry analysts, SIA's cost control measures and emphasis on premium travel helped it mitigate problems related to soaring fuel costs and slumping demand.
The group said net profit for the April-June quarter was S$358.6 million ($263 million) compared with S$424 million a year ago.
This beat street estimates of S$286 million.
Fuel costs for SIA was up 31 per cent to S$1.53 billion, partly offset by hedging gains of S$349 million. Fuel represents 40 per cent of all costs.