Singapore Airlines (SIA), whose interim earnings soared five-fold, expects to run into turbulence in the second half of its financial year as war clouds gather in the Middle East and the terrorist bomb attack in Bali raises new travel fears.
SIA, one of Asia's biggest carriers, said net profit in the six months ending September surged to S$774 million (US$434.8 million) from 134.8 million dollars last year, lifted by its cargo operations and a substantial tax write-back.
The result was achieved on a 10.5 percent surge in revenues.
But SIA chief executive Cheong Choong-kong said the outlook in the immediate future remained volatile as US President George W. Bush threatened war against Iraqi President Saddam Hussein.
A massive car bomb explosion that killed nearly 200 people on the famed Indonesian resort island of Bali on Oct. 12 is being pinned on Southeast Asian allies of Osama bin Laden's al-Qaeda network.
Analysts and industry players say the full extent of the attack's impact on travel in the rest of Asia has yet to play out.
Security concerns were hammered home recently when a Singapore Airlines 747-400 bound for Los Angeles aborted takeoff at the airport here Thursday following a bomb threat.
Passengers were evacuated, and although no explosives were found, the plane had to leave the next day.
Security has been tightened at a night strip popular with tourists here as well as in other Asian cities, and some have reported a dip in the number of late night partygoers.
Except for Bali, Cheong said SIA has not seen signs so far of any dampening of travel to other Southeast Asian countries.
But "we are not sure about what the effects will be eventually," Cheong said.
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