Singapore Airlines is cruising comfortably

SINGAPORE (May 18): Singapore Airlines is cruising comfortably. On Thursday, the city-state’s US$10 billion ($13.4 billion) flag carrier beat analysts’ forecasts with a 148% jump in annual earnings, underlining a successful turnaround. That means the group can afford to take its time evaluating growth options.

A good result was expected. But the carrier still beat the market, thanks to packed aircraft and fares that held up better than feared. That's a marked change from a year ago, when competition from Gulf airlines, China and low-cost upstarts led to a quarterly loss and a broad strategic review.

The eponymous Singapore Airlines brand is central to the recovery. Net profit here more than doubled, as it carried more passengers and revenue per available seat kilometre, a measure of efficiency, edged up. Cargo, which accounts for a fifth of group earnings, did well too.

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