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SINGAPORE Airlines' (SIA) net profit for the first quarter ended June 30, 2015, jumped to S$91.2 million, from S$34.8 million in the corresponding quarter last year, due to a lower share of losses from associated companies.
Revenue, which included contributions from now-subsidiary Tiger Airways, inched up 1.4 per cent to S$3.73 billion, from S$3.68 billion in Q1 2014 . Stripping out Tiger, revenue slipped 3.2 per cent to S$3.57 billion as yields came under pressure due to stiff competition from rivals, especially on the Americas and Europe routes, the airline said.
Earnings per share came to 7.8 Singapore cents, up from three Singapore cents a year ago.
Group expenditure for the quarter fell from S$3.64 billion to S$3.62 billion on the back of lower fuel costs. Operating profit came to S$111.4 million, rising from S$39.5 million a year ago.
Share of losses from associated companies narrowed from S$18.9 million a year ago to S$7.1 million after Tiger was converted to a subsidiary. However, this was partially offset by losses from India-based Vistara and Virgin Australia.
Meanwhile, shares of losses from joint venture (JV) companies was S$700,000 versus a profit of S$16.3 million previously, as losses were raced up by NokScoot and SIA Engineering's JVs.
SIA said: "Advance passenger bookings for the July-September quarter are higher year-on-year, mainly supported by promotional content. There is weaker demand for Americas and Europe regions, reflecting the competitive environment. Yields are expected to remain under pressure."
It added that fuel hedging losses will ensue in the July-September 2015 quarter.