Manila Bulletin
November 6, 2011
Singapore, Nov. 5 (Reuters) - Singapore Airlines Ltd. (SIA), the world's largest carrier by market value, reported a 49 percent drop in second quarter net profit due to high jet fuel prices and said yields will remain under pressure.
The airline, about 55 percent owned by singapore state investor Temasek Holdings, earned S$194 million ($152.7 million) for the three month ended September compared to S$380 million a year ago.
Its qurterly earnings came largely in inline with the average forecast of S$194.8 million by four analysis polled by Reuters.
SIA said fuel costs rose 35 percent in the first half from a year ago to S$747 million and cut its interim dividend to 10 Singapore cents from 20 cents previously.
The global airlines industry, which only recovred from its worst-ever downturn last year, is facing new head winds such as rising jet fuel prices and economic uncertainties in Europe and United States.
The international Air Transport Association (IATA) recently raised its 2011 profit forecast for the airline industry to $6.9 billion from $4.0 billion, but the grouping expects the industry's profit to fall by 29 percent next year.
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