Singapore Airlines to pay staff almost eight months' bonus
SINGAPORE Airlines Ltd. will reward employees with a profit-sharing bonus worth almost eight months after delivering full-year net income of S$2.78 billion (US$2.1 billion) that beat analyst estimates.
Employees will be paid about 7.45 months' bonus, lower than the 7.94 months received a year ago, Chief Executive Officer Goh Choon Phong said on Friday.
The smaller bonus payout comes as Singapore Air on Thursday warned that tariff and trade tensions on top of broader economic and geopolitical uncertainties could hurt demand for passenger and cargo flights.
The Singapore flag carrier's net income beat, with passenger yields declining slower than over the past three years, contrasting with its outlook.
However, the carrier posted muted results for its final quarter, a sign of uncertain times ahead. US President Donald Trump's trade policies have rattled markets and hurt consumer sentiment.
'The global airline industry faces a challenging operating environment,' the airline said in a statement. The growing challenges 'may impact consumer and business confidence,' it added. –BLOOMBERG
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
2 hours ago
- New Straits Times
Asean eyes stronger economic ties with Norway in green and digital sectors
JAKARTA: Asean is looking to deepen its partnership with Norway to advance green growth, digital innovation, and sustainable development across Southeast Asia, as the region navigates evolving climate challenges, economic transformation, and shifting global dynamics. Secretary-general Dr Kao Kim Hourn said Norway's expertise in renewable energy, maritime innovation, digital technology, and sustainable aquaculture makes it a natural partner in advancing the region's long-term goals. "Norway's global leadership in green solutions and the blue economy aligns closely with Asean's sustainability goals and development priorities," he said at a dinner reception with the Asean Committee and other stakeholders on Monday, according to a statement released by the Asean Secretariat on Tuesday. The event was hosted by the Ambassador of Indonesia to Norway, Teuku Faizasyah, at his official residence in Oslo. Also in attendance was the Ambassador of Norway to Asean, Kjell Tormod Pettersen. Kao also highlighted education, research, and innovation as vital areas to nurture the talent and technology that will shape the bloc's future. According to data from the secretariat, bilateral trade between Asean and Norway reached US$3.6 billion in 2024, while Norwegian foreign direct investment totalled US$22.5 million. While the numbers are encouraging, he emphasised that there is significant untapped potential and called for bold and practical steps to advance the partnership to the next level. "In today's global landscape marked by rising protectionism and mounting geopolitical uncertainties, collaborating with like-minded partners all over the world such as Norway becomes ever more critical to upholding open, inclusive, and rules-based economic cooperation," he added. Kao is on a working visit to Norway from June 9 to 12 with stops in Oslo and Bergen at the invitation of the Norwegian government, marking 10 years of the Asean-Norway Sectoral Dialogue Partnership. Norway, which is not a member of the European Union, was recognised as a Sectoral Dialogue Partner of Asean at the 48th Asean Foreign Ministers' Meeting on August 4, 2015 in Kuala Lumpur, Malaysia. – Bernama
The Sun
2 hours ago
- The Sun
EU proposes lowering Russia oil price cap in new sanctions
BRUSSELS: The European Union on Tuesday proposed slashing a price cap on Russia's global oil exports, as part of a new package of sanctions over the Ukraine war. The move comes ahead of a G7 summit in Canada next week where allies will push US President Donald Trump to be more aggressive in punishing the Kremlin. 'We are ramping up pressure on Russia, because strength is the only language that Russia will understand,' European Commission president Ursula von der Leyen said. 'Our message is very clear, this war must end. We need a real ceasefire, and Russia has to come to the negotiating table with a serious proposal.' The European Commission, the EU's executive, suggested cutting the current oil price cap from $60 to $45 as Moscow drags its feet on a ceasefire in Ukraine. The cap is a G7 initiative aimed at limiting the amount of money Russia makes by exporting oil to countries across the world. The oil price cap, set at $60 by the G7 in 2022, is designed to limit the price Moscow can sell oil around the world by banning shipping firms and insurance companies dealing with Russia to export above that amount. To have most impact the EU and other G7 partners need to get the United States to follow suit and agree to the cut in the level. But Trump so far has frustrated Western allies by refusing to impose sanctions on Russia despite President Vladimir Putin's failure to agree a Ukraine ceasefire. 'My assumption is that we do that together as G7,' von der Leyen said. 'We have started that as G7, it was successful as a measure from the G7, and I want to continue this measure as G7.' European leaders last month threatened Moscow with 'massive' sanctions if it did not agree a truce, but there has been no major progress in US-led peace efforts. 'Russia lies about its desire for peace. Putin is taking the world for a ride. Together with the United States, we can really force Putin to negotiate seriously,' EU foreign policy chief Kaja Kallas said. As part of its 18th round of sanctions since Russia's 2022 invasion, the EU also proposed measures to stop the defunct Nord Stream gas pipelines from being brought back online. Officials said they would also look to target some 70 more vessels in the 'shadow fleet' of ageing tankers used by Russia to circumvent oil export curbs. The EU in addition is looking to sever ties with a further 22 Russian banks and add more companies, including in China, to a blacklist of those helping Moscow's military. One EU diplomat described the latest proposals as 'one of the most substantive and significant packages we've discussed recently'. 'It will hurt Russia's ability to finance its war machine. Now let's see how the discussions evolve.' The sanctions will need to be agreed by all 27 EU countries, and could face opposition from Moscow-friendly countries Hungary and Slovakia.
New Straits Times
4 hours ago
- New Straits Times
Fed to keep rates on hold at least until September as inflation risks linger
BENGALURU: The US Federal Reserve will keep interest rates on hold for at least another couple of months, according to most economists polled by Reuters, as risks linger that inflation may resurge due to President Donald Trump's tariff policies. With most trade negotiations incomplete as the July 9 deadline for a 90-day pause on tariffs announced in April approaches, forecasters have been reluctant to change their already fragile economic outlook. Rising concerns about US debt and a deluge of bond issuance fuelled by a sweeping tax cut bill passed by the House of Representatives, but not the Senate, are not helping. Data on Friday showed no signs of significant stress building in the labor market, suggesting the Fed is in no hurry to cut interest rates any time soon. All but two of the 105 economists in the June 5-10 Reuters poll predicted the Federal Open Market Committee would keep the fed funds rate unchanged at its June 17-18 meeting in a 4.25-4.50 per cent range, where it has been since the start of the year. Around 55 per cent of economists - 59 of 105 - said the Fed would resume cutting next quarter, most likely in September and in line with interest rate futures pricing. That outlook has not changed from last month. "As long as the labor market looks fine, we expect the FOMC to continue to stay on hold, and use rhetoric to bolster their inflation-fighting credibility. Until there is a cost, why signal otherwise?" said Jonathan Pingle, chief US economist at UBS. "At the moment 'grey area' seems more 'charcoal'... the Committee is facing a substantial amount of uncertainty." Inflation expectations have remained elevated on predictions of high US trade barriers. The administration has recently raised aluminum and steel tariffs to 50 per cent from 25 per cent. US officials are currently engaged in trade talks with top Chinese officials in London, looking to secure a breakthrough. In the meantime, consumers are expecting price pressures to surge in coming years, while economists predict inflation to remain well above the Fed's 2 per cent target until at least 2027. A significant 42 per cent minority of poll participants - 44 of 105 - expect the FOMC to resume cutting rates in the fourth quarter of 2025 or later, with 20 predicting no cuts this year. "High tariffs are here to stay, and they will produce elevated inflation that is sustained well into 2026," said James Egelhof, chief US economist at BNP Paribas. "The Fed will see little need to cut... the lesson we have from history is, if inflation becomes entrenched in the economy, it can be very hard and very costly to remove." There was no clear consensus on where the rate would be by end-2025, but about 80 per cent of economists - 85 of 105 - predicted the fed funds rate in a 3.75-4.00 per cent range or higher. Trump called for a full percentage point reduction to 3.25-3.50 per cent immediately on Friday. The president's signature bill making its way through Congress is expected to add US$2.4 trillion to an already enormous US$36.2 trillion debt pile, making a rate cut more unlikely. "With more fiscal stimulus coming out of the tax and spending bill, the Fed sees less of a case for supporting the economy with lower interest rates," said Bill Adams, chief economist at Comerica Bank. "The fiscal policy looks set to push the deficit (higher)... exerting continued upward pressure on long-term interest rates that will be a headwind for credit-intensive parts of the economy like the housing market and business capital spending." The economy, which contracted 0.2 per cent last quarter on a widening trade deficit, is forecast to grow just 1.4 per cent this year, a sharp fall from 2.8 per cent in 2024. Next year, it was predicted to expand 1.5 per cent. That outlook was unchanged from May.
