Singapore Airlines' Q3 operating profit up 1.7%

Singapore Airlines Tuesday reported a 1.7% rise in Q3 operating profit, helped by an unexpected growth from cargo and mail, while net fuel costs fell. Profit reached S$293m for the three months ended Dec 31, S$5m up from the same period last year. The carrier, a barometer of the health of Asia's airline industry, said "2017 is expected to be another challenging year amid tepid global economic conditions and geopolitical concerns, alongside other market headwinds such as overcapacity and aggressive pricing by competitors". The company has come under pressure due to weakening demand for full-service long-haul travel amid competition from low-cost carriers and Middle Eastern network carriers. Operating profit in its main SIA brand fell 16.6% to S$151m. Profit fell 9.1% in its SilkAir regional airline, and was flat-to-slightly-higher for low-cost subsidiaries, Tiger Airways and Scoot. <br/>