Singapore Airlines saw profits tumble by 69% for the 2011/12 financial year, with the airline blaming high fuel prices and an “uncertain” global economy for the decline.
Although group revenue grew 2% to $14.8 billion on the back of a 3.6% increase in passenger carriage, net profits for the full year fell $756 million to $336 million as growth was offset by weaker yields.
Meanwhile, expenditure rocketed as jet fuel prices remained high throughout the year, pushing the group’s fuel bill up 29% to $1.3 billion and driving overall group expenditure up 10% for the year.
But the Group insisted it was well positioned for the year ahead with a “strong” balance sheet.
“Advance bookings for the coming quarter are higher year-on-year, albeit off a low base from the post-Japanese earthquake period last year,” a statement from the airline said.
However, it admitted promotional activities “necessitated by intense competition” would place downward pressure on passenger yields with fuel prices expected to remain high.
SQ full year profits plummet
