Singapore Airlines Ltd Improve Their Net Income

Singapore Airlines Ltd. managed to get a greater profit during October-December 2012 compared with the same period a year earlier. Net income rose 5.4% to S $ 142.5 million (U.S. $ 115 million). The increase in income was encouraging because the air transport industry faces fierce competition due to Qantas Airways Ltd in alliance with Emirates.

Competition causes businesses sell airline tickets cheaper by cutting profit per ticket. Goh Choon Phong, CEO of Singapore Airlines, said its net profit from the sale of tickets to passengers fell 5.8% to 11.4 cents, while cargo was reduced from 34.7 cents to 33.5 cents.

Fortunately, the plane occupancy increased from 77.2% to 79.3% so as to boost profits. In this quarter, Singapore Airlines carried 4.69 million passengers, up from the previous year is only 4.36 million passengers.