Singapore Airlines (SIA) posted a surprise loss during the first three months to March as the carrier battled “intense competition” in the marketplace.
Faced with rising cost pressures and the reinstatement of a fine lobbied against its cargo division, the carrier fell into the red, suffering a net loss of Sg$138.3 million ($99.4 million) in the fourth quarter to March 31 as operating profit tumbled.
Full-year net profits fell 55.2% to Sg$360 million as revenue dropped 2.4% to Sg$14.87 billion.
SIA said: “Intense competition arising from excess capacity in major markets, alongside geopolitical and economic uncertainty, continue to exert pressure on yields.”
The airline group is to conduct a “wide-ranging review” of its network and fleet, product and service, and organisational structure and processes.
Its objective is to “better position the group for long-term sustainable growth across its portfolio of full-service and budget airline operations”.
SIA added: “The review is aimed at identifying new revenue-generation opportunities and reshaping the business into one that continues to deliver high-quality products and services, though with a significantly improved cost base and higher levels of efficiency.”