Singapore Airlines is cautious about expanding capacity despite reversing a first-half loss and reporting a S$216-million ($153-million) net income for the year ending March 31. The airline, which slashed capacity by 11% in the last financial year amid a global business downturn, will add just 2% capacity to its network in the year ending March 31,2011. Chief Executive Chew Choon Seng says that while there was recovery in all sectors, including business class, the market remains fragile and yields are not back to pre-crisis levels. "The challenge for us is to sustain the recovery, not only just in loads, but also in yields," Chew says. "So by having a judicious rate of growth, it is our aim to keep load factors that are above break-even, and yet allow us to recover more of the yield loss." Chew's term as CEO ends in December.
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