Singapore Airlines Profit 70 Percent Drop

Singapore Airlines Profit Drop, Airbus A350-900

Singapore Airlines Profit Drop in Q2 2016. The Singaporean flag carrier announces the net profit in second quarter 2016 was not so good. According to the spokesperson, compare to the same period last year dropped about 70 percent.

In 2015 the carrier recorded SGD 214 million profit. Meanwhile there was only SGD 65 million of net profit. In addition, total revenue also dropped for about five percent. Singapore Airlines group (Singapore Airlines, Tiger Airways and Scoot) also reported have nearly 16 percent decreased.

In opposite way, the low cost carrier businesses (Tiger and Scoot) recorded SGD 8 million net profit in Q2 2016. Because both airlines have recorded loss in terms of operational cost. Thanks to less expenditure posts and larger market share. The spokesperson of airline said that this reflected of heavy challenged ahead. Airlines industry have become even harder since unstable oil prices and weakening global economics.

However, at the moment Singapore Airlines only operating wide body airliners. The newest fleet are coming in the future will be 61 of Airbus A350-900s and newest Boeing jet, the 787 Dreamliner. The A350 series will replace aged Airbus A330-300 fleet. While in 2018, Singapore Airlines will become Boeing 787-10 Dreamliner launch customer. Singapore Airlines is one of the largest airlines in the world. They also known as airlines with no domestic flights.