Singapore Airlines (SIA) on Thursday reported a nearly 9 per cent drop in its operating profit for the year ended March, as weakness in its main passenger travel operation offset a stronger cargo business.
Profit reached S$623 million (Dh1.64 billion) for the financial year, S$58m lower than a year ago.
The carrier, a barometer of the health of Asia’s competitive airline industry, has come under pressure due to weakening demand for full-service long-haul travel amid competition from low-cost carriers and Middle East network carriers.
“Intense competition arising from excess capacity in major markets, alongside geopolitical and economic uncertainty, continue to exert pressure on yields,” the company said.
Its annual net profit more than halved from year-ago levels to S$360m.
In 2015, the carrier marked Sinapore’s 50th anniversary, dubbed SG50, with a special paint job on its biggest aircraft, an Airbus A380.
Operating profit for the parent airline company fell about 20 per cent to S$386m.
But SIA Cargo swung to an operating profit of S$3m for the year, from a S$50m loss last year, reflecting a broader improvement in the global air freight market.
Data from the International Air Transport Association shows global freight volumes rose by nearly 11 per cent year-on-year over the first three months of the current calendar year.
Singapore Airlines declared a final dividend of 11 cents per share for the 2016/17 financial year.
* Reuters
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