Singapore Airlines ponders ‘radical’ measures after posting loss

Shares in Singapore Airlines dropped more than 7% Friday, the biggest one-day decline since the 2008 financial crisis, after it unveiled a surprise quarterly loss. In the latest sign that intensifying competition is squeezing Asia’s flagship carriers, the group reported a net loss of S$138m for the quarter ending in March. The carrier said the intensity of competition, coupled with political and economic uncertainty, would continue to put pressure on yields. The group announced a sweeping review of its network, fleet, products and service. At a post-results briefing Friday, Singapore Airlines CE Goh Choon Phong said: “We will leave no stone unturned. Some changes may be radical, but if needed, we will do it.. "Singapore Airlines has been at the forefront of innovation but it has lost its edge,” said Shukor Yusof, of Endau Analytics, a Malaysian aviation consultancy. Singapore Airline’s costs, once among the lowest of any premium airline, have risen rapidly in recent years as Singapore’s currency has strengthened while the city state’s labour costs have mounted, Yusof said. “This is not a one-off,” the analyst said. “There will be more declines. I would expect them to retrench staff.” Singapore Airlines needs to rationalise unprofitable routes, or cut capacity or frequency to improve profits, UOB Kay Hian analysts K Ajith and Sophie Leong said in a note Friday. <br/>