Singapore Airlines details battle plan to overcome challenging outlook

From flight schedule adjustments to cost discipline.

In its outlook after releasing its latest third-quarter results, Singapore Airlines said that it sees an overall challenging environment for the air transportation industry.

It expects many airlines to offer aggressive fares amid increasing capacity, and fuel prices to
remain high by historical standards.

Advance passenger bookings for the fourth quarter are also slightly lagging the planned capacity increase due to the shift in Easter holiday travel demand from March last year to April this year, which is another cause for worry since efforst to stimulate demand to boost loads will continue to place pressure on yields.

Singapore Airlines also projects air cargo demand to be relatively flat. However, cargo yields are likely to remain under pressure as the cargo business continues to face overcapacity.

"Under these circumstances, the Group will proactively make adjustments to flight schedules and capacity to match market demand. Discipline on costs will be maintained. With strong finances, the Group is well positioned to meet the challenges," said Singapore Airlines.