Singapore Airlines quarterly profit up, but cargo widens loss threefold

SINGAPORE AIRLINES surged back with a first quarter profit of S$62 million (US$49.68 million) drawn on revenues of S$2.9 billion, attributed to passenger growth.

SIA Cargo, tripled its loss year on year to SGD$39 million in the first quarter falling to 1.7 billion tonne/km down from 1.8 billion. Its cargo load factor dropped 1.9 percentage points to 62.8 per cent year on year. It currently operates a fleet of 13 Boeing 747-400Fs.

The "challenging conditions" look set to continue against a sluggish US recovery and Europe's economic woes with air freight under pressure in terms of demand and yields further impacted by historically high fuel prices, said the carrier.

Singapore Airlines' fuel bill accounted for 40 per cent of total expenditure. It aims to remain vigilant with its cost-control and in particular react quickly to capacity needs.