SIA Q1 profit hit by lower revenue, associates' losses

SINGAPORE Airlines (SIA) chalked up a 71.4 per cent drop in net profit to S$34.8 million for the first quarter ended 30 June, 2014, as revenue declined and share of losses of associated companies soared.

Revenue was 4.1 per cent lower year-on-year at S$3.68 billion as passenger revenue fell on the back of weaker yields and softer travel demand from some key Asian markets. For the quarter under review, earnings per share were three Singapore cents, down from 10.4 Singapore cents.

Expenditure eased 3.1 per cent to S$3.64 billion with fuel costs - a major expense for airlines - coming down from S$1.44 billion in 1QFY13/14 to S$1.37 billion in 1QFY14/15. The group recorded a hedging gain of S$20.4 million in the quarter, versus a hedging loss previously.