Demand from business travelers in the US remains 'relatively strong,' spokesman Stephen Forshaw said in an e- mail reply to Bloomberg queries.

Leisure traffic has declined recently for Asia's most profitable carrier and the airline may alter its route network in response, he said.

Economic turmoil and record fuel prices have eroded profits at Asia-Pacific airlines, forcing Qantas Airways Ltd., Thai Airways International Pcl and Korean Air Lines Co. to cut routes. With the credit crisis in the US deepening and financial institutions cutting at least 125,000 jobs, demand for premium- class travel may wane, an airline grouping official said.

'There are signs that business traffic, first and business class demand, is beginning to soften,' said Andrew Herdman, Director General of the 17-member Asia-Pacific airline grouping, including Singapore Air. 'The problems in the financial markets would suggest that trend will continue.'

Singapore Air has this year cut flights between Bangkok and Osaka, and suspended services between Taipei and Los Angeles. It filled an average of 79.4 per cent of seats in August, compared with 81.6 per cent the year before, with the biggest decline on US services.

'Forward bookings are still relatively stable,' Mr Forshaw told SIA. 'But given that there have been new developments this week, it is too early to predict the possible consequence of these on forward bookings.'

Singapore Air fell 1.5 per cent to S$14.66, the lowest level since July 15, at the close of trading in the city on Monday. The stock has declined 16 per cent this year compared with a 51 per cent plunge in the Bloomberg Asia Pacific Airline Index.

Airlines in the Asia-Pacific region will probably slow capacity expansion to 'low single-digit' in 2009, Mr Herdman said, with growth this year is expected to be between 3 per cent and 4 per cent.