Singapore Airlines Faces Profit Slump Amid Fierce Competition and Rising Costs
Singapore Airlines shares fell by as much as 6% after the airline reported a nearly 50% drop in net profit for the first half of the fiscal year, citing increased competition and lower yields. Despite a 3.7% rise in revenue, operating profit also fell by 48.8%. The airline maintained its interim dividend and announced a SG$1.1 billion cabin retrofit program for its Airbus A350 jets. SIA's passenger traffic grew, but not as fast as its capacity, leading to a drop in passenger load factor. The airline expects robust demand but acknowledges a competitive landscape.
