Singapore Air warns of competitive landscape as profit slumps

Singapore Airlines signaled profitability will remain under pressure despite expected “robust” demand for travel in the second half of the fiscal year, as it reported a slump in profit. The airline’s net income fell 59% to S$290m ($220m) in the quarter ending Sept. 30, which spans the lucrative peak summer-travel period. Revenue rose 2% to S$4.8b. Net fuel costs, after hedging, rose 10.6% in the period. Costs more broadly jumped almost 14.7%, outstripping the incremental revenue growth. Yield, a key indicator of airline profitability, slid again by 6.5% to 10.1 Singaporean cents per kilometer. “The operating landscape will continue to be competitive,” the airline said in a statement Friday. “The Group will remain nimble and agile, adjusting its passenger network and capacity to match evolving demand patterns.” The city-state’s flag carrier continues to grapple with a host of challenges from greater competition, geopolitical challenges and inflationary cost pressures. Singapore Airlines earlier this week pledged to invest S$1.1b to overhaul the seats in its long-haul aircraft, including all-new first-and business-class products, to maintain its world-leading premium offering.<br/>