Quarterly results drop 92%
Singapore Airlines (SIA) has reported a 92.1% slump in net profit in the fourth quarter to SGD$42m.
The airline said its full-year results had been hit by fuel hedging losses and falling demand for travel for the sharp drop.
SIA's full-year net profits almost halved year-on-year falling 48.2% to SGD$988, including a write-back on tax liabilities from the previous year.
Group operating profit fell 57.5% to SGD$904m, a decline of SGD$1.2bn, which SIA said "reflects a severe deterioration in operating conditions."
SIA warned that the recent outbreak of swine flu could delay a recovery in the airline industry.
"Advance bookings indicate that the drop in demand for air travel is leveling out. However, the probability of a sustained recovery has been set back by uncertainties arising from the Influenza A epidemic," SIA said.
In March SIA reported a 23% drop in passenger numbers, due in part to planned capacity cuts as demand suffered.
At the time SIA announced the cancellation of several services including Los Angeles, Osaka and Amritsar and the use of smaller aircraft on routes to San Francisco.
Reportedly valued at USD$9.8bn, SIA recorded SGD$543m in hedging losses.
Fourth quarter net profits fell sharply to SGD$41.9m (USD$28.6 million) from SGD$527.5m a year ago.
SIA said full-year net profits had halved to SGD$1.06bn in line with market forecasts.
Overall load factor dropped to 62.6% in March from 65.8% in December. SIA said it expects to slash capacity by 11% this year.
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