Price wars hit Singapore Airlines profits

Group blames “excess capacity and aggressive pricing”
Singapore Airlines is blaming “excess capacity and aggressive pricing” for a 15.5% drop in its operating profit for the second quarter, to S$109 million (€71 million).
Within the group, the flagship full-service airline contributed S$79 million to the result for the period ending September 30, with regional carrier Silkair and low-cost subsidiaries Scoot and Tigerair also posting profits. SIA Cargo made an operating loss.
Group revenues fell from S$3.85 billion to S$3.65 billion, expenditure from S$3.72 billion to S$3.54 billion, pulling net profits down 70% to $65 million.
“Most companies in the group recorded weaker operating results amid a sluggish global economy,” a statement reads. “However […] low-cost carriers continued to perform better on the back of an extended network and reduced operating expenditure.”
SIA added: “Excess capacity and aggressive pricing continue to persist in the market, exerting pressure on loads and yields.”
Asia One

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