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Singapore Airlines and Cathay Pacific up against similar headwinds

Saturday, May 20, 2017 - 05:50

BT_20170520_DRAGON_2895766.jpg
Budget travel has proved profitable for Singapore Airlines. Its Scoot fleet (above), together with SilkAir and Tigerair, accounted for 27 per cent of group operating profit. However, Cathay Pacific's Dragon is pricier than other budget carriers, and the airline is now reviewing its strategy.

BT_20170520_DRAGON_2895766.jpg
Budget travel has proved profitable for Singapore Airlines. Its Scoot fleet, together with SilkAir and Tigerair, accounted for 27 per cent of group operating profit. However, Cathay Pacific's Dragon (above) is pricier than other budget carriers, and the airline is now reviewing its strategy.

Hong Kong

On Thursday, Singapore Airlines reported annual earnings down 55 per cent to S$360 million. That missed analysts' expectations by a long shot and triggered a share drop of more than 6 per cent.

Just as worrying was the fact that the carrier is not filling up its aircraft

sentifi.com

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