SIA undertaking review after reporting big drop in full year profit
Singapore Airlines (SIA) has established a “transformation office” to conduct a review of the business after reporting a near halving of full year net profit for fiscal 2017. The airline group posted net profit for the 12 months to March 31 2017 of S$441.9 million (A$427.1 million), down 48.1 per cent from S$851.8 million in the prior corresponding period. The full year result was hurt by a fourth quarter loss of S$126 million, compared with net profit of S$234 million a year earlier. “ Intense competition arising from excess capacity in major markets, alongside geopolitical and economic uncertainty, continue to exert pressure on yields ,” SIA said in its full year results released on the Singapore stock exchange on Thursday evening. Singapore Airlines, and others, have battled the rapid international expansion of Chinese airlines and the ongoing rise of Middle East carriers offering long-haul to long-haul connections through their hubs, which have bitten into previously lu...