On May 1, 2024, a Singapore Airlines Airbus A350-941 was preparing to take off on the runway of Barcelona El Prat Airport in Barcelona, Spain.
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shares singapore airlines The city-state’s flag carrier reported a nearly 50% drop in net profit for the first half of April to September, as yields fell and competition intensified.
The stock fell 6.2% at the open on Monday before recovering to lose 3.72%.
Net profit Revenue in the first half of the fiscal year was S$742 million (US$559.12 million), a 48.5% decrease from S$1.44 billion in the same period last year.
The airline’s operating profit fell 48.8% to S$796 million, down from S$1.55 billion a year ago, while revenue rose 3.7% to S$9.5 billion.
Despite lower profits, the airline maintained its interim dividend of 10 Singapore cents per share.
In a press release, Singapore Airlines said the decline in operating profit was due to “increased capacity in key markets and increased competition,” which led to lower yields and ultimately lower profits.
SIA added that while demand for air travel is expected to be strong in the second half of the financial year, “the operating landscape will continue to be competitive”.
Last Monday, Singapore Airlines announced S$1.1 billion cabin renovation Its plans for 41 long-range and ultra-long-range Airbus A350 jets.
The airline said the first modified long-range jet will enter service in 2026 and the program will be completed by 2030.
