On May 1, 2024, a Singapore Airlines Airbus A350-941 was preparing to take off on the runway of Barcelona-El Prat Airport in Barcelona, Spain.
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shares singapore airlines The city-state’s flag carrier reported a nearly 50% drop in net profit between April and September as yields fell and competition intensified, sending its shares lower.
The stock opened down 6.2% on Monday before falling back to 3.72%.
net profit at Revenue for the first half of the financial year was S$742 million (US$559.12 million), down 48.5% from S$1.44 billion in the same period last year.
The airline’s operating profit fell 48.8% to S$796 million, down from S$1.55 billion a year ago, while revenue rose 3.7% to S$9.5 billion.
Despite lower profits, the airline maintained its interim dividend of 10 cents per share.
Singapore Airlines said in a press release that the decline in operating profit was due to “increased capacity in key markets and increased competition,” which led to lower yields and ultimately lower profits.
SIA added that while demand for air travel is expected to be strong in the second half of the financial year, the “operating landscape will continue to be competitive”.
Last Monday, Singapore Airlines announced S$1.1 billion cabin revamp Its plans for 41 long-range and ultra-long-range Airbus A350 jets.
The airline said the first of the modified long-range jets will enter service in 2026, with the program to be completed by 2030.
