Singapore Airlines' (SIA) first-half net profits tumbled by 88%, amid weakening passenger and freight demand.
Profits fell to S$134.8 million ($74 million) for the six months ending 30 September, down from S$1.14 billion last year.
Turnover fell 5% to S$4.76 billion from S$5 billion, while expenditure rose 0.8% to S$4.28 billion. Costs were mainly kept down by a change in aircraft depreciation policy, which cut expenditure by S$133 million. Group operating profit fell 36% to S$485 million, while pre-tax profit fell 79% to S$288 million.
SIA was hurt by falling demand, a weaker performance from subsidiary SIA Cargo and a 92% fall in the share of profits of associated companies, with lower contributions from 49%-owned Virgin Atlantic and operating losses incurred by troubled 25%-owned Air New Zealand.
Source: Flight International
