Singapore Airlines has warned that its key revenue metric, passenger yield, will remain under pressure this year due to increased competition and higher fuel costs.
The global airline industry faces challenges from rising competition, supply chain constraints, inflationary pressures on operating costs, and geopolitical uncertainties.
As airlines increase flights and routes to meet high travel demand, especially during summer, ticket prices are being squeezed, impacting profitability.
For Singapore Airlines, passenger yields dropped by 4.6% in the June quarter compared to the previous year, as more capacity enters the market, particularly in the Asia-Pacific region.