SINGAPORE Airlines (SIA) posted a 58.7 per cent year-on-year decline in first quarter fiscal year net profit to SGD139.6 million (US$102.5 million), drawn on revenues of SGD3.84 billion, which fell 0.6 per cent.
Yet SIA cargo sales jumped. Between April and June, cargo revenues increased six per cent to SGD30 million on the back of a yield increase of nine per cent, a reflection of overall market trends, according to London's Air Cargo News.
Despite the quarterly set back, SIA has reported year-on-year profit growth for three out of four quarters since it announced its three-year transformation plan in May last year, reported Singapore's Channel News Asia.
'Cargo demand in the near term is steady despite concerns over global trade tensions, the escalation of which could potentially have a longer-term impact on air cargo demand,' Singapore Airlines said.
A steep rise in oil prices and a lack of one-off items, however, dragged down net profit in the fiscal first quarter this year to SGD139.6 million, versus a revised SGD337.9 million in the previous year.
During the quarter, fuel costs increased by SGD154 million, due to a 39.3 per cent rise in jet fuel prices.
The improvement in yields came despite a 3.5 per cent decrease in cargo to 1.7 billion tonne kilometres and a reduction in load factor to 61.4 per cent against 65.7 per cent last year.
The airline's freighter business operates using seven Boeing 747-400Fs and covers 19 cities and territories.
Yet SIA cargo sales jumped. Between April and June, cargo revenues increased six per cent to SGD30 million on the back of a yield increase of nine per cent, a reflection of overall market trends, according to London's Air Cargo News.
Despite the quarterly set back, SIA has reported year-on-year profit growth for three out of four quarters since it announced its three-year transformation plan in May last year, reported Singapore's Channel News Asia.
'Cargo demand in the near term is steady despite concerns over global trade tensions, the escalation of which could potentially have a longer-term impact on air cargo demand,' Singapore Airlines said.
A steep rise in oil prices and a lack of one-off items, however, dragged down net profit in the fiscal first quarter this year to SGD139.6 million, versus a revised SGD337.9 million in the previous year.
During the quarter, fuel costs increased by SGD154 million, due to a 39.3 per cent rise in jet fuel prices.
The improvement in yields came despite a 3.5 per cent decrease in cargo to 1.7 billion tonne kilometres and a reduction in load factor to 61.4 per cent against 65.7 per cent last year.
The airline's freighter business operates using seven Boeing 747-400Fs and covers 19 cities and territories.