THE drop in fuel prices helped Singapore Airlines (SIA) earn a net profit of nearly S$275 million for the third quarter ended 31 Dec, 2015, up from S$214.7 million a year ago.
Revenue for the quarter slid 3.9 per cent year on year to S$3.94 billion due to weaker yields from both passenger and cargo operations. Passenger yields slid 4.6 per cent, while cargo yields tumbled 13.5 per cent.
Earnings per share for the quarter clocked 23.6 Singapore cents, rising from 17.3 cents a year ago.
Group expenditure fell to S$3.65 billion, or 7.6 per cent lower, on the back of lower fuel prices. This was partially offset by the stronger greenback against the Singapore dollar and a hedging loss.
Lower expenses pushed operating profit up to S$288 million, nearly doubling from S$146.3 million a year ago.
However, taxes were also higher, climbing from S$25.1 million a year ago to S$65.8 million.
SIA said: "The challenging operating environment is expected to persist, with travel demand remaining volatile, affected by economic forces and external events. On the competitive front, expansion of other full-service airlines as well as low-cost carriers, particularly in South-east Asia, will continue to exert pressure on loads and yields."