Singapore Airlines' profit nearly halves, causing shares to fall 6% amid intensifying competition.

• Singapore Airlines' shares fell after the airline reported a nearly 50% decline in net profit for the April to September period, due to lower yields and increased competition.
• On Monday, the stock initially fell 6.2% before later trading lower at 3.72%.
• The net profit for the first half of the fiscal year was $742 million SGD, which is 48.5% lower than the $1.44 billion SGD recorded in the same period last year.

The flag carrier of the city-state reported a nearly 50% decline in net profit for its first half, from April to September, due to lower yields and intensifying competition.

On Monday, the stock initially fell 6.2% before later recovering to trade lower at a 3.72% loss.

The net profit for the first half of the fiscal year was SG$742 million, a 48.5% decrease from the SG$1.44 billion recorded in the same period the previous year.

While revenue for the airline increased by 3.7% to SG$9.5 billion, its operating profit fell by 48.8% to SG$796 million, compared to SG$1.55 billion the previous year.

Although the airline experienced a decrease in earnings, it continued to pay out a temporary dividend of 10 cents per share.

The decline in Singapore Airlines' operating profit was caused by increased competition and higher capacity in key markets, resulting in lower yields and ultimately, profit.

The operating landscape will remain competitive despite the anticipated strong demand for air travel in the second half of the financial year, according to SIA.

SIA unveiled a $1.1 billion SGD cabin retrofit program for its 41 long range and ultra long range Airbus A350 jets last Monday.

The retrofitted long range jet will be operational by 2026, and the program will be fully implemented by 2030, according to the airline.