27 Jul 2010

Singapore Airlines posts better-than-expected result

3:43 pm on 27 July 2010

Singapore Airlines has made a better-than-expected $NZ254 million profit in the three months to June and says air travel is picking up.

The result compares with a $307 million loss in the same period last year.

Singapore Airlines, the world's second-largest airline by market value, says the rebound is due to an improvement in passenger and freight traffic, which it expects to maintain in the near term.

Passenger numbers rose by 5.5% in the quarter, while the amount of filled cargo space rose from 60% a year ago, to 65%.

The recovery comes despite volcanic ash cloud from Iceland that caused havoc for air travel in April, and the airline estimates it lost $50 million as a result of the eruption.