Singapore Airlines, Asia’s second biggest carrier, under pressure to reduce fares

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Singapore Airlines Ltd. (SIA), Asia’s second-biggest carrier by value, dropped the most more than 14 months the city on concerns that ticket prices may be more amid growing competition. Singapore Air fell 2.5 percent, the biggest decline since May last year, to close at S$10.33. The stock was the worst performer among 30 the Straits Times Index today. Aggressive fares and capacity injections from competitors will continue to yields, a measure ticket prices, the company said yesterday. Singapore Air’s first-quarter profit dropped 71 percent because lower fares and bigger losses from affiliates including Tiger Airways Holdings Ltd.

[eap_ad_1] “The guidance suggests a challenging passenger yield , especially given continued competition from the Middle Eastern airlines,” HSBC Holdings Plc said a report today, downgrading Singapore Air’s stock to neutral, or hold, from overweight, or buy. “Until SIA can start to show a earnings , we believe there are limited near-term share price drivers.” Net income in the three months ended June fell to S$34.8 million ($28 million) from S$121.8 million a year earlier, the airline reported yesterday. Sales dropped 4.1 percent to S$3.68 billion.(Bloomberg)