SIA Cargo ‘under pressure’
08 / 08 / 2012
SINGAPORE Airlines Group says its cargo division “faces pressure with respect to both demand and yields” despite the company posting a net profit of S$78m (US$62m) in the first quarter – a 73 per cent hike.
The Singapore flag carrier also reveals SIA Cargo’s operating loss widened to $35m ($27m) during this year period.
Fuel continues to be the group’s largest expense, accounting for about 40 per cent of its total expenditure.
“Continued weakness in airfreight demand exerted downward pressure on cargo loads and eroded yields. Forward indicators for airfreight signal a weak outlook for the cargo business,” SIA says in a statement.