Singapore Airlines has warned that yields are likely to come under even further pressure as competition intensifies.
The carrier also said the rise in fuel costs was showing no sign of slowing with yet another increase in February putting a further strain on the industry.
The picture is a familiar one for airlines, many of which have reported tumbling profits amid economic instability, natural disasters and rising fuel costs.
Cathay Pacific reported a 61% decline in profits earlier this week (Travel Today, March 15) and warned that even tougher times could be on the horizon.
“The operating environment remain challenging with jet fuel prices increasing 14% over the same month last year,” Singapore Airlines said in its monthly update. “Passenger yields are likely to come under pressure with intense competition, coupled with recent promotional activity.”
The carrier recorded a 6.8% rise in revenue passenger kilometres while capacity climbed 5.4%
The disparity saw systemwide load factors improve by one percentage point to just over 76% with South West Pacific routes climbing 0.8 points to 83.5%.
