Singapore Airlines returned to profit in the last quarter, but warned the cargo outlook remains poor.
After booking a loss in the first quarter of 2012, the carrier saw net profit climb to $62 million in the three months ended June 30, up from $35.81 million a year earlier. Group revenue increased 6 percent year-over-year to $2,998 million.
However, SIA Cargo, which operates a fleet of 13 B747-400 freighters, posted an operating loss of $39 million in the quarter, compared with a loss of $11.1 million a year earlier.
SIA Cargo recorded a 5.6 percent year-over-year decline in load metric ton kilometers in the quarter, despite reductions in available freight capacity. This brought load factors down by 1.9 percentage points to 62.8 percent.
“Continued weakness in air freight demand exerted downward pressure on cargo loads and eroded yields,” the carrier said. “Forward indicators for air freight signal a weak outlook for the cargo business. SIA Cargo faces pressure with respect to both demand and yields.”
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