Singapore Airlines said high fuel prices and poor cargo returns had contributed to its 69 percent profit slump in the year ended March 31.
The carrier saw net profit for the year collapse from Sg$756 ($604 million) to just $268 million, despite group revenues increasing two percent year-over-year to $12 billion.
Group expenditures, driven by a 32 percent spike in jet fuel costs year-over-year, increased by 10 percent to $1.3 billion. “Fuel prices are expected to remain at high levels, which will adversely impact the Group’s operating performance,” said the company in a statement.
The carrier, which cut freight capacity by 20 percent earlier this year because of weak demand, said its fleet of 13 B747-400 freighters would remain unchanged over the 2012-13 financial year.
“The recovery of air freight demand will be gradual, possibly only in the second half of the year,” said the company. “Cargo yields are likely to remain stagnant for the next quarter.”
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