Fuel costs hit profits at Singapore Airlines

Fuel costs hit profits at Singapore Airlines

Persistently high jet fuel prices have adversely affected figures at Singapore Airlines, with the carrier reporting a net profit of $135 million for the third quarter of the 2011-12 financial year.

This represents a drop of $153 million, or 53 per cent, over the same quarter in the preceding year.

Group revenue improved $34 million (one per cent) to $3.9 billion, on the back of marginal growth in passenger carriage, while expenditure rose at a faster pace, increasing $386 million (per cent) to $3.7 million. 

Expenditure on fuel grew by $375 million, up by a third, as jet fuel prices increased 30 per cent over the same period last year.

Fuel accounted for 40 per cent of expenditure, up seven percentage points year-on-year.

Consequently, operating profit declined to $157 million, $352 million lower (69 per cent) than the year before.