Fines hit profits at Singapore Airlines

Fines hit profits at Singapore Airlines

Fines imposed in relation to alleged price fixing scam at its cargo operation have seen net profits fall over the third quarter at Singapore Airlines.

The carrier set aside $199 million over the period in accordance with the Singapore Financial Reporting Standards.

The sum saw net profit fall to $288 million, a decline of $116 million from the corresponding period a year earlier.

However, while SIA Cargo has accepted the plea offer made by the United States Department of Justice, it has filed appeals against fines imposed by the European Commission and the South Korean Fair Trade Commission, and intends to contest the sums involved.

Excluding the fines, Group net profit improved by 21 per cent.

In more positive news, Singapore Airlines was recognised by the World Travel Awards as offering the Leading Airline Inflight Entertainment in 2010.

Group revenue was recorded at $3,841 million, up 12 per cent year-on-year. This was supported by continued improvement in carriage and yields.

On the cost side, group expenditure rose $237 million to $3,332 million. Expenditure on fuel before hedging increased $154 million owing to higher jet fuel prices.

Future Development

During the October-December quarter, Singapore Airlines took delivery of two Airbus A330-300s and reinstated one Boeing 747-400 and one Boeing 777.

As of December 31st, the operating fleet comprised 109 passenger aircraft – eight B747-
400s, sixty-six B777s, nineteen A330-300s, eleven A380-800s and five A340-500s – with an average age of six years and two months.