Too early to declare clear skies for SIA

AFTER a better-than-expected first quarter, are things looking brighter for Singapore Airlines (SIA)?

For the first quarter of FY17/18, SIA's net profit fell 8.4 per cent to S$235.1 million partly due to the absence of a one-off gain. However, operating profit jumped from S$193.2 million to S$280.8 million.

The bottom line was helped in part by SIA Cargo which turned in a solid performance by swinging into the black with an operating profit of S$6 million, versus an operating loss of S$34 million a year ago. It also bucked the trend with a 4.8 per cent uptick in yield, bolstered by stronger cargo demand.

Yields at the parent airline fell a lower-than-expected 1.9 per cent while SilkAir's yields dropped by 8.6 per cent. The lower decline in yields for the pare…