Singapore Airlines plunges into red in last quarter

Singapore Airlines plunges into red in last quarter

Singapore Airlines fell into the red in the three months to March in the face of “intense competition”.

The carrier suffered a net loss of Sg$138.3 million ($99.4 million) in the fourth quarter to March 31 as operating profit tumbled and the airline made a provision for its cargo business.

Full-year net profits fell 55.2% to Sg$360 million as revenue dropped 2.4% to Sg$14.87 billion.

SIA said: “Intense competition arising from excess capacity in major markets, alongside geopolitical and economic uncertainty, continue to exert pressure on yields.”

The group is to conduct a “wide-ranging review” of its network and fleet, product and service, and organisational structure and processes.

The objective is to “better position the group for long-term sustainable growth across its portfolio of full-service and budget airline operations”.

SIA added: “The review is aimed at identifying new revenue-generation opportunities and reshaping the business into one that continues to deliver high-quality products and services, though with a significantly improved cost base and higher levels of efficiency.”

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