Singapore Airlines Posts Loss

Singapore Airlines posted a surprise loss during the first three months to March, as the carrier battled “intense competition” in the marketplace. Faced with rising cost pressures and the reinstatement of a fine levied against its cargo division, the carrier slipped in the red and suffered a net loss of $99.4 million in the fourth quarter to March 31 as operating profit tumbled. Full-year net profits fell 55.2% to $258 million as revenue dropped 2.4% to $10.7 billion, TTG Media reported. SIA said intense competition arising from excess capacity in major markets, alongside geopolitical and economic uncertainty, continue to exert pressure on yields. The airline group is to conduct a “wide-ranging review” of its network and fleet, product and service, and organizational structure and processes. Its objective is to “better position the group for long-term sustainable growth across its portfolio of full-service and budget airline operations”. SIA added: “The review is aimed at identifying new revenue-generation opportunities and reshaping the business into one that continues to deliver high-quality products and services, though with a significantly improved cost base and higher levels of efficiency.”