Profits at SIA Engineering hit $67 million in the three months to the end of December, 5.5 per cent higher compared to the same quarter in 2011.

This was on the back of lower spending even as revenue fell, the Singapore Airlines subsidiary said on Tuesday.

Total revenue for the three months dropped 8.3 per cent year-on-year to $278.2 million while expenditure fell by more than 10 per cent to $247 million. This was partly due to lower material costs and an exchange gain during the quarter, the company said.

Looking ahead, the aircraft repair and maintenance firm said that its core business is expected to remain stable in the current January to March quarter. While uncertainties in the world's major economies will continue to impact the aviation industry, SIA Engineering said it will maintain its focus on cost control and productivity improvements.