Singapore Airlines' interim profit nearly halves on higher fuel costs
Singapore Airlines' interim net profit dropped nearly 44 per cent, hurt by a sharp spike in jet fuel costs stemming from the Middle East conflict, somewhat offset by its share of losses at Air India and other associates narrowing.
The country's flag carrier posted half-yearly net profit of S$134 million (US$104.56 million) on Wednesday (Nov 11), down from S$239 million a year ago.
A consensus from Visible Alpha had expected profit to drop further to S$65.3 million.
The airline's expenditure rose more than 20 per cent to S$10.73 billion, largely due to a surge of over 90 per cent in fuel costs before hedging.
Average jet fuel prices over the six months stood at US$171 per barrel, up 86.7 per cent from the previous year amid the ongoing conflict in the Middle East, the company said.
The softer first-quarter performance also weighed.
Meanwhile, Singapore Airlines' share of losses from Air India in the interim period narrowed to S$361.7 million from S$429.5 million a year ago.
Total revenue for the first half rose 16.8 per cent to S$11.30 billion from the same period last year.
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