(Reuters) -Singapore Airlines (SIA) reported a half-year profit on Friday that nearly halved year-on-year, reflecting intensifying market competition coupled with higher fuel costs and expenses.
Airlines globally have ramped up the number of flights and routes to cater to robust air travel demand, which has resulted in increased competition, putting pressure on ticket prices and squeezing profit margins.
The city state’s flag-carrier said net profit slumped to S$742 million ($561.61 million) for the six months ended Sept. 30 from S$1.44 billion reported a year ago.
The airline’s total expenses rose to S$8.70 billion for the half-year, a 14.4% rise, on the back of a jump in both fuel and non-fuel costs.
SIA also declared an interim dividend of 10 Singapore cents per share.
($1 = 1.3212 Singapore dollars)