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Singapore Airlines plunges into red in last quarter

Singapore Airlines fell into the red in the three months to March in the face of “intense competition”.

The carrier suffered a net loss of Sg$138.3 million ($99.4 million) in the fourth quarter to March 31 as operating profit tumbled and the airline made a provision for its cargo business.

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 group is to conduct a “wide-ranging review” of its network and fleet, product and service, and organisational structure and processes.

The 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.”

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