SIA's Q3 profit down 65% due to exceptionals

SINGAPORE Airlines' net profit for the third quarter ended Dec 31, 2013, plunged 65 per cent year-on-year to $50.1 million, dragged down by exceptional items as well as share of losses and one-off items from associate Tiger Airways.

Revenue was flat at $3.87 billion, as higher passenger carriage was offset by lower yields - down 2.7 per cent - amid stiff competition and unfavourable exchange rate movements from key revenue-generating currencies.

The exceptional items largely came from the provision for penalties incurred by SIA Cargo which had reached a settlement for $78.3 million under a United States Air Cargo Class Action. Separately, it was also fined $2.3 million by the Swiss Competition Commission for a Swiss air cargo competition law case. In the latter, it has said that it will study the grounds of the decision and decide whether to make an appeal.