The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Singapore Airlines Ltd., Southeast Asia’s biggest carrier, posted a surprise fourth-quarter loss after making a provision for its cargo unit, while the main carrier had a loss amid competition from budget operators in the region.
The carrier reported a net loss of S$138.3 million ($99.3 million), compared with an estimate for a profit for S$54.3 million in a Bloomberg survey of analysts. The company took a provision of S$132 million in the period.
Singapore Air, which is under pressure from regional discount carriers, said in February that 2017 will be a challenging year as passenger and cargo yields — a key measure of profitability — remain under pressure. In a bid to boost shareholder returns, it has stepped up debt sales as it goes on a record plane-buying spree.
Shares of the marquee carrier — the only Asian airline to have flown the Concorde and the first in the world to fly the A380 superjumbo — have risen 11 percent this year, lagging behind the 15 percent gains for the Bloomberg Asia Pacific Airlines Index.