Singapore Airlines’ Q2 profit tumbles 81% as fuel costs sting

Bloomberg

Singapore Airlines Ltd. reported an 81 percent plunge in second-quarter profit as higher fuel costs weighed on earnings.
Net income for the three months through September fell to S$56.4 million ($41 million) from S$293.3 million a year earlier. Sales rose 5.6 percent to S$4.06 billion.
The premium Asian carrier joins others such as Deutsche Lufthansa AG and Air China Ltd. that have been stung by oil. That’s why the International Air Transport Association cut its outlook for airline profitability for the current year by 12 percent from an earlier estimate.
The surge in fuel costs, the biggest expense for Asian operators, will pose a challenge for Singapore Air, which is in the midst of a transformation programme.
It is seeking to cap costs and better position itself against Middle Eastern and low-cost Asian carriers. Passenger yields — a gauge of money earned carrying a passenger for one kilometre — slipped 1 percent in the second quarterly decline. That shows the carrier is still facing a lot of competition in both its premium and economy offerings.
There was good news on the cargo front, with yields climbing 9.9 percent as shippers rushed to beat tariff increases sparked by the trade dispute between the world’s two biggest economies. Things look more uncertain for 2019 with global economic growth projected to slow.
Singapore Airlines shares have fallen 12 percent this year.