Singapore Airlines' SIA Engineering has posted a 3% rise in annual net profit thanks in part to higher profits in the fourth quarter.

The company says in a statement that net profit in the year ending 31 March rose 3% to S$261 million ($178 million) from S$254 million.

Operating expenses rose 3% to S$923 million from S$907 million but revenue rose 4% to S$1.05 billion from S$1.01 billion.

Net profit in the fourth quarter rose 19% year-on-year to S$66 million from S$56 million.

This is because revenue in the quarter increased 9% to S$246 million from S$225 million but expenditure only rose 0.5% to S$219 million from $205 million.

SIA Engineering says revenue rose in the year "mainly due to the increase in flights handled and work in line maintenance" as well as an increase in the number of aircraft it is managing and monies generated from retrofitting a Boeing 747-400.

It says its "associated and joint venture companies turned in a good performance with profits increasing 9.6% or S$15.2 million to S$173 million" representing 58% of group pre-tax profits.

Expenditure, meanwhile, was contained in the forth quarter due to lower staff costs as a result of a lower profit sharing bonus, it adds.

SIA Engineering warns that the outlook in the current fiscal year is "weak and likely to deteriorate further".

Source: Air Transport Intelligence news