Singapore Airlines profit drops on fuel costs

SINGAPORE: Singapore Airlines Ltd said its July-September profit fell 36 per cent as fuel costs boosted expenditures. The airline warned passenger demand may drop next year.

Singapore Airlines' net profit for the fiscal second quarter was 324 million Singapore dollars (USD 219 million), down from SGD 508 million in the same period a year ago, the carrier said in a statement late yesterday.

"Although advance bookings for the immediate next quarter are holding up reasonably well, there are signs of weakness beyond that," the company said. "Fuel prices have retreated but fuel remains the biggest single item of operating expenditure."

Revenue rose 10 per cent to SGD 4.4 billion (USD 3.0 billion) for the quarter, driven by higher passenger traffic. Expenditures jumped 20 per cent to SGD 4.1 billion (USD 2.8 billion).