Despite revenues going up 5.1 per cent to $279.3 million compared to a year ago, earnings fell 1.5 per cent to $73.4 million, the company said in an announcement to the Singapore Exchange on Monday.

Expenditures were up 3.2 per cent or $7.5 million, to $239.2 million.

Taking the first two quarters together, the engineering subsidiary of Singapore Airlines saw profits for the first six months of the current financial year dip almost 9 per cent to $132.1 million, compared to a year earlier.

Total turnover fell 1.2 per cent to $529.5 million.

Joint-venture and associate companies contributed $83.3 million to group earnings or 55.6 per cent of pre-tax profits.

Basic earnings per share in the second quarter was $6.80. For the six months ended Sept 30, the figure was $12.27.

Net asset value per share as at Sept 30 was 102.3 cents, or 1.4 per cent lower than at March 31.

The company has declared an interim dividend of 5 cents per share for the half-year, 1 cent more per share over last year.

On the company's future outlook, SIAEC said: 'The current global financial and economic conditions are impacting airlines.

'This affects the entire MRO (maintenance, repair and overhaul) business... Management will continue to exercise tight cost control and look for ways to improve productivity.'

Looking ahead, it said: 'While we will progress with caution, the company remains committed to strengthening its presence in Singapore and beyond to enhance its international competitiveness.'

SIA ground-handling and catering arm, Singapore Airport Terminal Services (Sats) will announce its half-year financial results later on Monday.

SIA will unveil its financials on Thursday.