Shares in Singapore Airlines have continued to slide following the release of disappointing results at the carrier.
Net income fell to S$44.7 million in the three months ended June 30th, well behind an analyst consensus of S$127 million and significantly below the S$253 million recorder a year earlier.
Shares in Singapore Airlines slide following results
Following the release, stock fell as much as 3.9 per cent, the most on an intraday basis since March 15th, recovering slightly to S$14.27 earlier.
Both the main flying unit and cargo business at Singapore Airlines posted operating losses for the period, driven largely by a 46 per cent increase in the cost of fuel.
The carrier also scaled back capacity growth plans amid “flat” bookings and competition from budget rivals.
The Singapore-based airline plans to start the new budget carrier next year – as global airlines fight back against deteriorating conditions.
Revenue for the quarter rose 3.2 per cent to S$3.58 billion from S$3.47 billion a year ago.
The airline said high fuel costs will remain its biggest challenge in the coming months.