Singapore Airlines profits down

High fuel costs dragged down Singapore Airlines' (SIA) net profit in its first financial quarter by 82 percent, the carrier said Thursday. SIA said net profit for the April-June quarter nosedived to Sg$45 million ($37.4 million) from Sg$253 million a year ago. "The group’s performance for the first quarter of the 2011-12 financial year was impacted by high fuel costs," the carrier said in a statement. "The prevailing price of jet fuel of above $130 per barrel is close to 50 percent higher year-on-year. At these levels, fuel cost now constitutes more than 40 percent of the group’s total expenditure," the statement added. "With forward prices remaining high and volatile, high fuel cost will remain the biggest challenge for the group in the coming months." SIA's revenue grew three percent to Sg$3.6 billion due to higher passenger carriage, but gains were offset by expenditure, which rose at a faster rate of 11 percent due to costlier fuel. SIA warned that the stuttering state of the global economy -- where debt fears in the US and Europe continue to depress markets worldwide -- would place a dampener on the industry. "With the current economic uncertainties, significant challenges remain in the key markets of Europe and the United States," it stated. Southeast Asian chief representative for the Centre for Asia Pacific Aviation Brendan Sobie said SIA's profit plunge was due to their inability to pass on the additional costs from rocketing fuel prices. Singapore Airlines shares on the Singapore Exchange closed down 0.41 percent to 14.71 before the release of its first-quarter results.