SIA's Q2 profit plunges to S$64.9m from S$213.6m in Q2 FY15/16

SINGAPORE Airlines' (SIA) profit for the second quarter of FY2016/17 plummeted to S$64.9 million from S$213.6 million in the year-ago period as the carrier faced a challenging operating environment.

Lower dividends from long-term investments, Scoot's impairment on Boeing 777-200 aircraft and weaker results from associated companies also weighed down the bottom line.

Revenue for the three months ended Sept 30, 2016, slid from S$3.84 billion to S$3.65 billion while earnings per share for the quarter fell to 5.5 Singapore cents, down from 18.3 Singapore cents a year ago.

Group operating profit for the second quarter declined 15.5 per cent to S$109.1 million as the fall in revenue outpaced the drop in expenditure, which came on the back of cheaper fuel.

The company is declaring an interim dividend of Singapore nine cents per share, down from 10 Singapore cents a year ago.

For the six-month period, net profit rose from S$304.8 million to S$321.5 million, while revenue slumped from S$7.58 billion to S$7.3 billion.

SIA said: "The passenger airline business continues to be impacted by geopolitical uncertainty and weak global economic conditions. The outlook in most major economies remains tepid. Furthermore, excess capacity and aggressive pricing continue to persist in the market, exerting pressure on loads and yields."