SINGAPORE Airlines quarterly profit declines 53pc to US$108 million

SINGAPORE Airlines (SIA) posted a 53 per cent fourth quarter net profit loss to S$135.2 million (US$108 million) year on year, drawn on revenues of S$3.88 billion which changed little.

Controlled by state investor Temasek Holdings, Singapore Airlines, the world's second largest airline, attributed the decline to the harsh global economic environment, decreasing demand in passenger and cargo markets as well as high fuel prices. Its fuel bill soared 33 per cent in the quarter from a year ago, the company said.

Its profit was lower than the average forecast of S$162.5 million from four analysts polled by Reuters. This is the fourth straight quarter that the airline's profit has underperformed analysts' expectations.

Singapore Airlines said weakness in both passenger and cargo sectors would persist. "Forward bookings continue to show signs of weakness in the final quarter of the financial year, due to uncertainty in the global economy and the protracted Eurozone debt crisis," the airline said in a statement.

"Passenger yields are expected to remain under pressure while cargo yields are expected to continue to decline," it said, adding that slack air cargo market is likely to continue due to soft demand in major developed countries.

To expand, the airline plans to commence its own long-haul budget airline, Scoot, by mid-2012, reported the USA Today, saying that this would help the Singapore Airlines group, including its regional unit, SilkAir, and its short-haul budget affiliate Tiger Airways (with a 33 per cent stake), to run against the odds in 2012.

Late last year, the International Air Transport Association (IATA) reduced its forecast for airline industry profits by a quarter to $3.5 billion for 2012, adding that IATA warned the industry's losses would increase to an US$8.3 billion if Europe's debt crisis deepens and provokes a new financial crisis. Singapore Airlines quarterly profit declines 53pc to US$108 million

source: shippinggazette/picture: google.com

DELTA Airlines buy 100 units of Boeing 737

In the middle of news about the purchase of Airbus aircraft, on Thursday August 2011, Delta Airlines confirmed the purchased of 100 units of Boeing 737.

The American-built aircraft would be received by Delta Airlines in the year 2013-2018. The value of the purchase reached 8.5 billion U.S. dollars, although it is believe Delta Airlines received number of discounted rates.

The new Boeing aircraft to be ordered Delta Airlines has a more comfortable cabin, the roar of the engine smoother, and larger capacity of storage on the passenger's head.

It is estimated that Delta Airlines will receive a Boeing 737-900 Extended Range (ER) with a single aisle and can be loaded with up to 180 seats. Later, the planes will fly domestic routes.

Interestingly, the launch-customer that is believed to fly Boeing737-900 ER is Indonesian airlines, namely Lion Air. Even the Lion Air already order to 178 units, which until August has received up to 51 units of the aircraft.

In January 2011, Delta Airlines, based in Atlanta has announced it will order up to 200 aircraft, with an option to order another 200 aircraft. Delta Airlines aircraft intended to replace the old aircraft, such as the DC-9-50s and Boeing 757-200s.

The average age of Delta aircraft reaches 16 years, far below the Garuda Indonesia is on average only 7-8 years. When the new plane arrived, Delta Airlines expects to cut fuel costs between 15-20 percent. Delta Airlines, the world's second largest airline, with a total fleet of 700 units of the aircraft.

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