AFP - Wednesday, August
20
SINGAPORE, Aug 19, 2008 (AFP) - Singapore Airlines' regional
unit SilkAir said Tuesday it expected continued strong passenger
demand for its Asian destinations despite high fuel prices and
other challenges.
Chief executive Chin Yau Seng told reporters that SilkAir had
slightly lowered its passenger capacity growth forecast for the
year because of "a few blips" in demand despite the strong overall
sentiment.
"So far we have seen continued strong support to a lot of our
regional points," Chin said, adding the support came from
holidaymakers and business travellers.
SilkAir, whose fiscal year ended in March, reported a 12.3
percent increase in passengers, to 1.82 million.
It said operating profit was 40 million Singapore dollars (28.3
million US), up 100.5 percent, on revenue of 506 million
dollars.
Chin said SilkAir had planned for capacity growth of about eight
to 10 percent this financial year but now foresees five to seven
percent, partly because of the impact of natural disasters in China
and Myanmar.
SilkAir flies to Chengdu, the main city in China's Sichuan
province, a tourist destination struck by a massive earthquake in
May.
A cyclone devastated Myanmar the same month. That country's main
city, Yangon, is also served by the airline.
The carrier also flies to South Asia, other Chinese cities and
secondary destinations in Southeast Asia.
Chin said there had been "some softening of demand to China for
various reasons" over the Olympic period but did not elaborate. The
Beijing Games opened on August 8 and end on Sunday.
"I think this year there are some challenges, fuel being one of
them, but that is part and parcel of the business," Chin said.
High oil prices have sparked the biggest crisis in Asia's
airline industry in several years, and analysts have said some
carriers were likely to go under unless jet fuel costs eased.
Singapore Airlines said last month its net profit in the first
quarter fell 15.4 percent compared with the same period last year
as higher fuel costs cut into rising revenues.