Singapore Airlines (SIA) has reported a net profit of S$194 million for the second quarter ended September 30, a drop of 49 per cent from a year ago.

While revenue for the quarter grew 2 per cent to S$3.7 billion, group expenditure at S$3.6 billion rose at a faster pace of 9 per cent on higher jet fuel prices.

SIA declared an interim dividend of 10 cents per share for the half-year ended 30 September, lower than the interim dividend of 20 cents in the previous year.

On its outlook, SIA said the economic uncertainty and weak consumer confidence are impacting demand for air transportation.

Advance passenger bookings are showing signs of weakness, particularly in Europe and the United States.

It noted that Global Purchasing Manager Indices have fallen, pointing to weaker demand for air freight.

Both passenger and cargo yields are therefore expected to remain under pressure.

There will be no let up on high fuel prices either. SIA said forward prices for jet fuel remain high and volatile.

Source: CNA