Singapore Airlines, the world's largest airline by market value, posted a 43 per cent drop in quarterly profit, hurt by hedging losses and slowing demand for travel and cargo amid a global economic downturn.
The airline also warned that demand for air transport will remain weak this year as global trade slows. The city-state's flag carrier may continue to scale back flights and reduce capacity to cope with the downturn.
Singapore Air, 55 per cent-owned by state investor Temasek Holdings, has seen declining passenger demand as the global slowdown crimps corporate and leisure travel, forcing it to cut flights to other Asian cities.
Singapore Air's October-December net profit fell to S$337.2 million (Dh825m) from S$590m, beating a forecast for S$312 million by four analysts.