SIA Cargo makes loss
27 / 07 / 2011
SINGAPORE Airlines’ cargo division has reported an operating loss of S$14 million (US$11.6 million) in the financial year first quarter against a S$60 million ($49.9 million) profit a year earlier.
The airline, whose parent saw an 82 per cent drop in net profit to S$45 million ($37.3 million) compared to S$253 million ($210.4 million) in the same quarter a year ago, has blamed rocketing fuel prices.
Average jet fuel prices jumped 46 per cent year-on-year, said the carrier, which even an improved hedging performance could not overcome.
Singapore has also experienced “almost flat” advance bookings over the next few months compared to the same period last year. “With the current economic uncertainties, significant challenges remain in the key markets of Europe and the United States,” the airline said.