Singapore Air first-quarter profit slides as costs start to hurt

Singapore Airlines Ltd. profit fell in the fiscal first quarter from an all-time high a year ago as higher costs and lower yields continued to eat into the carrier’s earnings. Net income for the three months ended June 30 decreased 38.4% to S$452m ($337m), the carrier said in a statement Wednesday. Revenue however rose 5.3% to S$4.7b thanks to a nearly 14% year-on-year rise in passengers during the period to 9.6m, and a boost from cargo. Non-fuel costs are just one of the things putting pressure on Singapore’s bottom line, rising 7.7% for the quarter, outpacing revenue growth. Jet fuel costs after hedging meanwhile increased 30.1% versus the same period of 2023, as increased flying and higher oil prices weighed on expenses. Singapore Air isn’t the only carrier witnessing something of a comedown after the heady days post Covid. Concerns about profitability have been echoed by carriers in Europe and the US as the aviation industry resets following a record run after the pandemic.<br/>