SIA on lookout for softening demand as Scoot, SilkAir issues drag on

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SINGAPORE (Aug 7): Singapore Airlines is worried about the weakening global economy, which in the past had portended a softening of business travel demand and yields, the airline told analysts in its 1Q results briefing on Aug 1.

SIA said it is also bearish on the outlook for its cargo business, as the US-China trade war has caused demand to fall, although freighter capacity put in place during the cargo boom years of 2017-2018, have remained in place, causing oversupply and continuing to put pressure on cargo yields. 

For the 1Q19/20 ended June, SIA reported earnings of S$111.1 million, 20.7% lower than a year ago, as revenue growth was offset by higher losses of S$31 million from associate Virgin Australia. Excluding the losses, earnings would...(click on link for full story on theedgesingapore.com)