(Reuters) -Singapore Airlines reported a 38.4% fall in first-quarter profit on Wednesday, hurt by lower passenger yields and a rise in fuel costs.
The city-state’s flag carrier said net profit fell to S$452 million ($337.5 million) for the three months ended June 30, from S$734 million a year earlier and was below a Visible Alpha consensus of S$504.6 million.
Airlines globally have been increasing the number of flights and routes to cater to robust air travel demand, especially during the summer months.
This has resulted in increased competition, which has put pressure on ticket prices and squeezed airlines’ profit margins as fuel costs rise.
This is the company’s first results announcement after a London-Singapore flight ran into severe turbulence on May 20, causing dozens of injuries and a death.
($1 = 1.3392 Singapore dollars)
(Reporting by Adwitiya Srivastava and Sneha Kumar in Bengaluru; Editing by Shinjini Ganguli and Sonia Cheema)
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