SIA re­ports S$138m net loss in Q4

New Straits Times - - Business -

SINGAPORE: Singapore Air­lines (SIA) yes­ter­day re­ported a net loss in the fourth quar­ter, caus­ing full-year profit to drop more than half as in­tense com­pe­ti­tion con­tin­ues to buf­fet the car­rier.

SIA has been bat­tling strong com­pe­ti­tion from Asian low-cost car­ri­ers and Mid­dle East­ern air­lines, which now boast mod­ern fleets and top-qual­ity in­flight ser­vices.

It said in a state­ment that a “wide-rang­ing re­view” of the com­pany’s net­work, fleet, prod­ucts, ser­vices, or­gan­i­sa­tional struc­ture, and pro­cesses is un­der­way to bet­ter po­si­tion the air­line for the fu­ture.

The car­rier said it suf­fered a net loss of S$138.3 mil­lion (RM430.7 mil­lion) in the fourth quar­ter to March as op­er­at­ing profit tum­bled and the air­line made a pro­vi­sion for its cargo busi­ness.

For the full-year, net profit came in at S$360 mil­lion, down 55.2 per cent from the pre­vi­ous year, with an­nual rev­enue eas­ing 2.4 per cent to S$14.87 bil­lion.

“In­tense com­pe­ti­tion aris­ing from ex­cess ca­pac­ity in ma­jor mar­kets, along­side geopo­lit­i­cal and eco­nomic un­cer­tainty, con­tinue to ex­ert pres­sure on yields,” said the com­pany. A re­bound in jet fuel prices also eroded earn­ings as the av­er­age price for Singapore Jet Kerosene climbed from its low of US$37.90 (RM164.24) a bar­rel in Jan­uary last year to US$61.9 in March this year.

“The size of the loss is quite stag­ger­ing for the three months and it would in­di­cate that SIA would need to do some­thing dras­tic and rad­i­cal to over­come its dif­fi­cul­ties in the com­ing years,”said avi­a­tion an­a­lyst Shukor Yu­sof of En­dau An­a­lyt­ics, not­ing that prof­its in the pre­vi­ous quar­ters had been on the de­cline.

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