Singapore Airlines posts Q3 op profit rise, warns on capacity

Monday, 10 February 2014 00:00 - - {{hitsCtrl.values.hits}}

SINGAPORE (Reuters): Singapore Airlines Ltd. (SIA) reported a 15.3% rise in third-quarter operating profit last week but warned of capacity cuts and weak yields as it struggles with weak demand.

It reported an operating profit of S$151 million ($119 million) for the quarter ended December 31. Net profit slumped to S$50.1 million from S$142.5 million hit by losses from associated companies and one-off items. “Advance passenger bookings for the fourth quarter are slightly lagging the planned capacity increase due to the shift in Easter holiday travel demand from March last year to April this year,” it said in a statement. “Efforts to stimulate demand to boost loads will continue to place pressure on yields.” The airline said it will make adjustments to flight schedules and capacity to match market demand. SIA, 56% owned by sovereign investor Temasek Holdings, is facing intense competition on its medium and long-haul markets from Gulf carriers, as well as from budget airlines.