SATS chalked up a net profit of S$59.7 million in the second quarter, up 26.8 per cent from a year ago, even as revenue dropped 4.4 per cent to S$422.7 million.
The bottom line was helped by lower expenditure, which fell from S$399.7 million to S$363.5 million.
Earnings per share came to 5.4 Singapore cents, up from 4.2 cents a year ago.
The board has declared an interim dividend of 5 Singapore cents per share.
For the half year, net profit rose to S$109.3 million, up from S$90.4 million. Revenue was lower for the six months at S$839.6 million, down from S$877.4 million.
SATS said: "The operating environment for SATS continues to be challenging with slower regional economic growth, competitive pressures in aviation and increasing manpower costs."
It added, however, that it remains confident in the long-term growth prospects for Asia and is adopting new technologies to boost productivity.