SIA SHARES FALL AS AIRLINE POST SLUMP IN NET INCOME

Dino D'Amore
By Dino D'Amore July 29, 2011 12:06

SIA SHARES FALL AS AIRLINE POST SLUMP IN NET INCOME

Singapore Airlines has reported an 82% slump in net income to S$44.7 million ($37 million) in the three months ended June. Shares fell as much as 9.3% on the news – the most on an intraday basis since March 15.

SIA’s main flying unit and its cargo business both posted operating losses owing to a 46% increase in fuel prices. Passenger load factor was also down for the 11th straight month in June on a year-on-year basis. SIA made an operating loss of S$36 million in the fiscal first quarter, compared with a profit of S$136 million a year earlier. The cargo unit had a S$14 million loss.

However it was not all bad news. Regional carrier SilkAir posted a S$21 million operating profit for the first quarter and its engineering arm had a S$35 million profit. Fuel costs were up for the airline to 27% to S$1.44 billion, accounting for 40% of overall expenditure but SilkAir had a fuel-hedging gain of S$12 million compared with a S$78 million loss a year earlier.

Dino D'Amore
By Dino D'Amore July 29, 2011 12:06
Write a comment

No Comments

No Comments Yet!

Let me tell You a sad story ! There are no comments yet, but You can be first one to comment this article.

Write a comment

Only <a href="http://www.aviationnews-online.com/wp-login.php?redirect_to=http%3A%2F%2Fwww.aviationnews-online.com%2Fairline%2Fsia-shares-fall-as-airline-post-slump-in-net-income%2F"> registered </a> users can comment.