Singapore Airlines (SIA) has reported profits of $359 million for the year to March 31, a 5.3 per cent dip from the 12 months before that.
The fall was due in part to losses from associated companies including budget carrier Tigerair, SIA said on Thursday.
The poorer performance came even as group operating profits increased by 13.1 per cent year-on-year to $259 million.
This was despite a challenging January-March fourth quarter which recorded a group operating loss of $60.3 million, higher than the $44.2 million that was reported a year ago. Both the parent airline and SIA Cargo reported operating losses for the quarter.
Going forward, the operating environment will continue to be challenging with intense competition in many areas and economic uncertainty in key markets, SIA said.
Passenger bookings are expected to match the planned increase in capacity but yields are expected to remain under pressure due to fare discounts to maintain or grow market share.
Fuel prices are also expected to stay high which presents a continuing challenge, the carrier said.
SIA which faces intense competition from rivals like Emirates and Cathay Pacific in the premium long-haul sector is growing its regional arm SilkAir and long-haul budget unit Scoot, to take advantage of growth in other sectors.