SINGAPORE (AFP) — Buoyant travel demand has raised net profits at Singapore Airlines (SIA) by 73.2 percent in the three months to September compared with the same period a year ago, the airline said Wednesday.
But despite the second quarter figures, Singapore Airlines (SIA), which is the first carrier to commercially operate the Airbus A380 superjumbo, said slowing economic growth had cast a cloud over prospects.
Net profit totalled 507.8 million Singapore dollars (350.66 million US), up from 293.2 million dollars a year ago, the company said in a statement to the stock exchange.
Revenue rose 9.9 percent to 3.97 billion dollars from 3.61 billion dollars in the same period last year.
"Passenger demand from both business and leisure markets remained buoyant in the second quarter, pushing passenger load factor to 81.6 percent," the airline said.
Net profit for the six months to September was 931.9 million dollars, up 7.32 percent from the same period a year earlier, on revenues of 7.59 billion dollars, up 8.0 percent.
On October 25, SIA became the first airline in the world to commercially operate the double-decker A380 when it flew to Sydney and back.
It won praise for its luxurious and more spacious interior that includes private cabins with full-length beds.
But the airline, which is one of the most profitable carriers in the world, said the outlook was challenging and could affect revenues.
"While advanced bookings are holding up, slowing economic growth sparked by tight credit markets and increasing volatility in financial markets, cast a cloud of uncertainty over the strong revenue environment," it said.
"On the cost side, the price of fuel remains a significant variable for the second half of the year," it said, referring to surging oil prices.
SIA raised fuel surcharges on October 24 to partially offset an increase in jet fuel prices.
Its shares rose 20 cents to close at 19.60 dollars on Wednesday.
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