SIA Cargo provision drags group into the red with S$138m Q4 loss

Singapore

SINGAPORE Airlines (SIA) surprised with a fourth-quarter loss, as the bottom line was weighed down by a provision for SIA Cargo as well as weaker operating profit.

The group's net loss was S$138.3 million for the three months ended March 31, versus a net profit of S$224.7 million a year ago, missing analysts' expectations of a S$54.3 million profit, according to a Bloomberg poll.

A provision of S$132 million was made for SIA Cargo related to an EU air cargo competition law case while the quarter also felt the absence of a S$117 million refund of a fine that was received last year.

In addition, SIA's operating profit plunged from S$153.2 million to S$27.6 million, plagued …