UPDATE 2-Singapore Airlines misses Q3 profit view, flags competition concerns
(Recasts paragraph 1, adds details, background from paragraph 2 onwards)
Feb 20 (Reuters) - Singapore Airlines Ltd reported a quarterly net profit on Tuesday that missed estimates and flagged concerns of increased competition as the airline industry made the most of a rebound in air travel following the end of Covid-related curbs.
The city-state's flagship carrier said passenger yields continued to come under pressure from competitors as airlines globally hiked up the number of flights and routes to meet increased travel demand.
Geopolitical and macroeconomic concerns, inflationary pressures, and supply chain constraints are likely to pose headwinds to the industry, it added.
Net profit rose nearly 5% to S$659 million ($490.4 million) helped mainly by a lower tax expense as well as a share of profits from associated companies and a surplus from the disposal of aircraft and spare parts.
Even then, however, it missed analysts' average estimate of S$777.8 million, as per LSEG IBES data.
The carrier's operating profit fell 19.3% to S$609 million year-on-year as total expenses rose 9.2%. This was mainly due to a 9.1% rise in fuel costs, which account for a large portion of overall expenses.
Non-fuel costs rose 9.1%, "in line with the 11.1% increase in overall passenger and cargo capacity," the airline said.
Robust demand for air travel drove its revenue up 4.9% to its highest-ever quarterly revenue, with the airline seeing air travel demand remaining healthy in January-March quarter as well as the following April-June quarter.
($1 = 1.3439 Singapore dollars)
(Reporting by John Biju and Adwitiya Srivastava in Bengaluru; Editing by Janane Venkatraman )