Singapore Airlines' first quarter net profit soared 73 per cent from last year, it said, partly driven by higher passenger traffic, as per a AFP report. But the growth statistic was magnified by a low profit figure for the corresponding period in 2011, when it was hit by higher fuel costs and soft demand due to the earthquake and tsunami disasters in Japan.
The carrier said net profit came in at SGD 78 million for the quarter to June 2012, compared with SGD 45 million last year, and was in line with analysts'
expectations. The airlines’ group revenue advanced six per cent to SGD 3.78 billion, while expenditure climbed four percent to SGD 3.71 billion. Earnings were boosted by a rise in passenger volumes as it offered a host of promotions to bolster loads amid intense competition and a weak global economy, the airline said in a statement. But it painted a gloomy outlook for the rest of the year in a "difficult environment", with the price of jet fuel -- which accounts for 40 per cent of total expenditure -- still near historical highs despite retreating. "The global economy remains uncertain as Europe struggles to contain its debt crisis, while the United States faces a sluggish recovery," said the airline, which analysts said gets over half of its earnings from premium passengers. "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," it added.
Click here to see the original article>expectations. The airlines’ group revenue advanced six per cent to SGD 3.78 billion, while expenditure climbed four percent to SGD 3.71 billion. Earnings were boosted by a rise in passenger volumes as it offered a host of promotions to bolster loads amid intense competition and a weak global economy, the airline said in a statement. But it painted a gloomy outlook for the rest of the year in a "difficult environment", with the price of jet fuel -- which accounts for 40 per cent of total expenditure -- still near historical highs despite retreating. "The global economy remains uncertain as Europe struggles to contain its debt crisis, while the United States faces a sluggish recovery," said the airline, which analysts said gets over half of its earnings from premium passengers. "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," it added.