Receive $80 Grab vouchers valid for use on all Grab services except GrabHitch and GrabShuttle when you subscribe to BT All-Digital at only $0.99*/month.
Find out more at btsub.sg/promo
[SINGAPORE] Singapore Airlines Ltd climbed to a six- month high after reporting quarterly profit that beat analyst estimates, as lower fuel prices helped Southeast Asia's largest carrier attract more passengers with cheaper fares.
The stock rose 3.9 per cent to S$11.24, the highest close since July 29. The shares gained 0.4 per cent this year, compared with 9 per cent decline for the city's benchmark Straits Times Index.
Net income climbed 36 per cent from a year earlier to S$274.9 million in the third quarter ended Dec 31, Singapore Air said Thursday after the market's close, compared with analysts' estimates of S$224 million. The carrier boosted occupancy of its seats to 80 per cent from 78 per cent a year earlier with lower fares, helping achieve the profit even as it lost S$72 million in fuel hedges and S$77 million from the weakening of the local currency against the US dollar.
"The numbers should get progressively better as fuel hedges come close to spot" prices, Alan Richardson, a Hong Kong-based money manager at Samsung Asset Management Ltd., said in an e- mail. Richardson said last month that he's betting on improved earnings for Singapore Air as it benefits from plunging jet fuel prices.
The price of jet fuel cargoes loading from Singapore fell 39 per cent in the past 12 months to $42.84 Thursday.