Singapore Airlines revenue down in 2Q2016 due to drops in yield and RPKs

Singapore Airlines attributed (28-Jul-2016) decreased revenue in Q1FY2017 mainly to a reduction in passenger revenue stemming from a 3.7% year-on-year contraction in passenger yield and a 1.7% drop in RPKs. Capacity decreased 1.1%, resulting in a 0.5ppt increase in load factor. Expenditures decreased due to a reduction in net fuel costs, offset by higher ex-fuel costs. The carrier's outlook remains challenging amid economic weakness and geopolitical concerns in some markets. The airline said competition remains intense with aggressive capacity injection. Yields will remain under pressure and will be further diluted if key revenue-generating currencies depreciate against the Singapore dollar. [more - original PR]