Singapore Airlines shows little sign of recovery: Reuters
Singapore Airlines is showing little sign of recovery, the news agency Reuters reports, with passenger yields falling to four-year lows. Financial figures released this week highlight SIA’s eroding pricing power in a weak market for premium airlines.
Yields fell for the third quarter in a row as competition intensifies from airlines like Emirates, Malaysia Airlines and Cathay Pacific.
As businesses worldwide continue to cut travel spending, SIA’s treasured premium-class seats are not being filled. Low-cost carriers such as AirAsia and Lion Air now operate more than 50% of seat capacity in Southeast Asia.
“We are going through a period in the world where demand is sluggish, but there’s been a lot of capacity growth by many airlines, some more than others,” Mak Swee Wah, head of SIA’s commercial activities told Reuters.
Singapore Airlines saw operating profits increase 24% year-on-year to SGD$86.9 million (€52 million) in the quarter ending September. Passenger yield fell to 11 Singapore cents from 11.4. Passenger numbers rose 6% to 4.8 million.