Singapore Airlines-parent sees profits rise

The SIA Group has posted a net profit of $78 million in the first quarter of the 2012 financial year, up 73 per cent from the same period of 2011. Group operating profit of $72 million improved $61 million, albeit off a low base as the group was confronted with higher fuel costs and depressed demand following the Japanese earthquake in the same quarter last year. Revenue grew six per cent to $3.8 billion, bolstered by a 9.6 per cent improvement in passenger carriage. This traffic growth was driven by promotions undertaken to boost loads, amid intense competition and weak business sentiment. As a result, yields declined three per cent from the same period in the previous financial year. SIA Group – which owns Singapore Airlines – remains cautions. “The global economy remains uncertain as Europe struggles to contain its debt crisis, while the United States faces a sluggish recovery,” read a statement. “This has negatively impacted business confidence and the outlook for travel demand. Promotional efforts undertaken to boost carriage add downward pressure on yields, especially in Europe and the United States. “In this difficult environment, the Group will maintain its vigilance in cost control and remain nimble in deploying capacity to meet market demand.”