Singapore Airlines’ operating profit rises 8.2% despite cargo losses

Singapore Airlines’ operating profit rises 8.2% despite cargo losses

   Singapore Airlines’ operating profit in its first quarter ended June 30 rose 8.2 percent to S$274 million ($173.2 million), although its cargo subsidiary, Singapore Airlines Cargo made an operating loss of S$5 million ($3.2 million).

   Consolidated revenue for the first quarter increased 12.4 percent to S$3.4 billion ($2.15 billion).

   During the quarter, Singapore Airlines launched its Chinese air cargo joint venture, Great Wall Airlines, which June 1 started a six-times-weekly freighter service from Shanghai to Amsterdam.

   “Great Wall Airlines is a significant commitment to directly participate in the further development of China’s air cargo market and facilitate export growth from China to major trading partners around the world,” Singapore Airlines said.

   In July, Singapore Airlines signed a letter of intent to purchase 20 Airbus A350 XWB-900s and nine additional Airbus A380-800s, with options on another 20 A350 XWB-900s and six A380-800s. The value of the 29 aircraft on firm order at catalogue prices is $7.5 billion.