SIA Engineering's fiscal second quarter net profit fell 16.8% to S$61.1 million ($43.6 million).
The maintenance arm of Singapore Airlines (SIA) says revenues fell 11.2% to S$248 million in the quarter ending 30 September.
The company attributes the decline to lower airframe and component overhaul work, material usage, and the lack of revenue from the redesign, retrofit, and overhaul of a B747-400 that was completed in the fourth quarter of the last fiscal year.
"(The decline in revenue) was partially mitigated by higher line maintenance revenue, with more flights handled and an increase in aircraft support work, and fleet management revenue," says SIA Engineering.
Expenditure fell 11% to S$213 million owing to lower staff costs, subcontract costs, and reductions in material usage.
"In tandem with the airline industry's early signs of recovery, the group posted a better performance in the second quarter compared to the first quarter," says SIA Engineering. "However, the prospects for a sustained recovery remain uncertain."
Source: Air Transport Intelligence news
