A Singapore Airlines plane takes off
© AFP/File Roslan RahmanSINGAPORE (AFP) - Quarterly net profit of 293.2 million dollars (186.75 million US) compared with 343.2 million dollars in the same period last year and was below the 300-383 million dollars forecast by analysts.
The airline said the group's revenue improved 7.7 percent from last year to 3.61 billion dollars, boosted by a 5.9 percent rise in passenger traffic and 2.9 percent increase in average yields.
However, the improvement was offset by higher jet fuel prices, it said.
SIA said its fuel expenses rose 31.9 percent to 2.56 billion dollars in the first half to September as average jet fuel prices rose to 90 US dollars per barrel from 74 US dollars a year ago.
The airline did not given details of fuel expenses in the second quarter.
"Looking ahead, demand for air travel is expected to remain buoyant, supported by favourable conditions in the Asian and European economies," SIA said in a statement.
"However, the price of jet fuel is still volatile and remains high. Geopolitical uncertainties could drive prices up again in coming months."
Benchmark oil futures contracts have been hovering around 60 US dollars a barrel, down from record highs of more than 78 US dollars a barrel in July.
Analysts have said heating oil demand during the northern hemisphere winter could help push prices higher.
The airline said it hopes to continue expanding capacity despite the delay in the delivery of the Airbus A380 aircraft.
SIA will be the first airline to fly the giant double-decker plane, whose delivery has been delayed because of persistent manufacturing problems.
"Work is in progress on contingency plans to mitigate the impact of these delays on forward capacity growth," it said.
In a news briefing, SIA chief executive Chew Choon Seng said the airline hoped to get its first Airbus A380 by October 2007.
Chew declined to say how much compensation they expect from Airbus as discussions are still ongoing.
©AFP