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SINGAPORE (July 27): Singapore Airlines (SIA) shares fell 5.5% on Friday, the largest year-on-year decline after the carrier announced lower-than-expected earnings in the first quarter [19659002] Analysts reduced their forecasts for the rest of the year, after a 3.2% drop in passenger yields in the first quarter, an indirect indicator of airfares, which has curbed expectations of a rise that has been observed in "Passenger capacity could remain under pressure given the faster expansion of capacity of the SIA group this year, especially on long-haul routes to Europe and Europe." 39 North America, "said Corrine Png, CEO of Crucial Perspective.
Singapore Airlines shares fell 5.5% and were down 4.9% q at 0215 GMT, against the broader local index which was 0.3% lower.
The airline earned US $ 140 million (US $ 102.89 million) in the three months ended June 30, down 59% from Singapore's revised figure of $ 338 million. previous year, after Thursday's market
The previous year's figure was restated due to accounting changes and included 175 million Singaporean dollars of windfall profits. Mohshin Aziz, a Maybank analyst, said the increase in airport fees as of July 1 on the Singapore hub could exacerbate the pressure on yields, especially for short-haul flights.
Returns to the SilkAir regional branch fell by 10.3% in the first quarter. SilkAir faces strong competition from budget carriers such as AirAsia Group Bhd and is expected to be merged with the parent brand after 2020.
At the parent brand, considered a benchmark for multi-service carriers in the region, % yields, while DBS analyst Paul Yong said that he was expecting a "slight improvement". In the fourth quarter of last year, Singapore Airlines brand returns rose 1% after a long period of quarterly decline.
Cargo yields rose 9.9% in the first quarter, but volumes fell and Singapore Airlines warned that trade tensions could have a longer-term impact on demand for air cargo.
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