Lower fuel costs, fine refund propel SIA's Q4 profit to S$225m

Singapore

LESS expensive jet fuel and a S$117 million refund of a competition-related fine gave lift to Singapore Airlines' wings as it posted a net profit of S$224.7 million for the fourth quarter ended March 31, 2016, up from just S$39.6 million a year ago.

However, yields continued to suffer amid tough competition as SIA, regional wing SilkAir and SIA Cargo reported lower figures. In particular, overcapacity in the cargo market caused SIA Cargo's yields to tumble sharply by 15.5 per cent year-on-year to 26.8 cents/ltk (load-tonne-kilometre).

"The group is contending with a challenging operating environment in key markets, caused in part by weak economic activity and relatively rapid growth in c…