Singapore Airlines’ net profit halves in 2018 fiscal year

Singapore Airlines plane (Source: reuters)

The carrier’s revenue increased by 3.3 percent to 16.3 billion SGD (12 billion USD) for the year which ended on March 31, as the number of passengers it carried jumped 7.2 percent.

Meanwhile, its net profit decreased 47.5 percent to 682.7 million SGD from 1.3 billion SGD a year earlier. 

The fall was attributed to a rise in fuel prices. Fuel expenditure climbed 17.6 percent, or 688 million SGD, as jet fuel prices rose by an average 21.6 percent during the year, the airline said.

Some of the expenses stemmed from overhauling the fleet of its regional wing SilkAir, which is changing from Airbus to Boeing aircraft, as well as restructuring costs as it prepares to merge SilkAir into the parent airline.

The airline said the suspension of flights involving Boeing 737 MAX 8 planes operated by SilkAir, and issues with Rolls-Royce engines that power its 787 Dreamliner fleet, had hit passenger capacity.

SilkAir grounded its 737 MAX 8 planes in March after an Ethiopian Airlines plane crashed, killing all 157 on board. It was the second fatal accident for the MAX 8 passenger jet in six months, after a crash in Indonesia./.

VNA