In October 2016, Singapore Airlines recorded disappointing performance compared to 2014, which was heavily influenced by global economic conditions and also geopolitical uncertainties, it appears that cargo and passenger returns both the factors of its profitability had been put to the test. Shares of Singapore Airlines fell during this period by 9.7 percent, compared to the previous one with a decline of only 2.8 percent. Singapore Airlines faced an operating environment challenge that caused profits to drop rapidly from a value of S$213.6 million to a value of S$64.9 million. During that quarter of 2016, earnings per share also fell to 5.5 cents in Singapore currency, compared to 18.3 cents in 2015 (Business Times, 2016), with passenger revenue declining 6.4%. , S$320 million, although Scoot managed to cover this fall with rapid growth in its passenger revenue to S$88 million. Also according to the financial results, due to capacity expansion by Scoot and Silkair, costs excluding fuel rose to S$287 million, an increase of 5.9% compared to 2015. Say no to plagiarism . Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original EssayWhile, over the 9 months to December 2017, Singapore Airlines improved group operating profit from $67 million to $595 million, an increase of 12.7%. they managed to overcome a 3.2% revenue reduction due only to the decline in passenger flight revenue, plus their expenses reduced by 4% to $437 million by the end of March 2017. SIA Engineering revealed that due to high spending level, their operating profit is less and also there has been a decline in revenue as well. The divestment of HAESL, Hong Kong Aero Engine Services Ltd resulted in increased expenses compared to the profit sharing bonus provision and offset by lower manufacturing overheads. Revenue declined in part due to fleet program revenue, moderated by an expansion in maintenance revenue. The change in its operating profits was dwarfed by lower profits due to long-term initiatives, losses of $108 million from related organizations versus profit shares of $60 million a year earlier, and waste and airplane disposal costs and spare parts, compared to a surplus a year ago it cost $67 million. Which was then covered by a $142 million gain from SIA Engineering's divestment of HAESL and the $36 million profit HAESL made following the offering of its 20% stake in Singapore Aero Engine Service Ltd. SIA Engineering Company said on October 27, 2017 that with its joint partners they have reached an agreement with MB Aerospace Newton Abbot Limited for the offering of 100% of the shares of Asian Compressor Technology Services Company Limited. The value of which should be 14.3 million dollars. In the penultimate quarter, Singapore Airlines took delivery of five A350-900s, four of which entered service by the end of December 2017. SIA also increased the number of flight services and expanded the airline's route system, in order to to take care of the demand this year. Singapore Airlines repeatedly studies and adjusts its fuel policies to oversee volatile fuel prices. For the final quarter of the financial year, SIA backed 37.4% of its fuel in Singapore Jet Kerosene (MOPS) at a weighted normal cost of $67 per barrel. Agrowing and green A350-900 fleet has enabled the expansion of all longer routes for SIA. In November 2017, Singapore Airline flights from Bali were affected and canceled due to volcanic eruptions resulting from Gusti Ngurah Rai Airport closing, affecting 445 flights and 196 international routes. Analysts already predicted that 2017 would be a difficult year for economic conditions and geopolitical concerns, close to other market obstacles, for example, the pricing strategies of competitors. Loads and yields for both travelers and freight organizations are expected to be challenged in 2017. Fuel costs have increased since the last quarter of 2017 and are expected to remain unstable as there are still uncertainties regarding yield world oil production. SIA's share prices during the periods from July 2017 to November 2017 fell to a massive low of 7.25%. At the end of March 2016, Singapore Airlines reported a net loss of S$138.3 million in three months, there was a deep decline in operating profits and provisions for SIA cargo worth S$132 million due of an EU air cargo competition case. The Singapore Airline Group announced that it plans to reintegrate the SIA cargo into the SIA Group to help with efficiency through the wide range of communications and help within the group itself. Due to this decline in returns, the group decided to review the company's business for a better long-term position. Many analysts have decided to cut their target prices following SIA's dismal P&L, even if cargo aspects improve, this will only cost at the expense of returns. Although SIA posted a loss of $138.3 million last year, in the final quarter of 2017, SIA surpassed that and made a profit of $181.8 million, and continued to make profits until as of March 2018. (Singapore Business Review, 2018) Due to the implications of oil prices above In recent years, SIA Group is trying to provide modern and environmentally friendly aircraft and further grow its system with a full segment service market and low costs. However, the main interest is in the innovation of this airship and also in the continuous shipment of new items for the cabin. The merger between Scoot and Tigerair under the Scoot brand has been successful, which also helps strengthen the airline's low-cost operations. Fluctuating oil prices are also affecting SIA's non-stop flights as it could impact the viability of such services. During the month of February 2018, fuel costs increased. (Singapore Business Review, 2018) The price of jet fuel was $65 per barrel. and Brent at $45 a barrel. However, with these high fuel prices, an analyst named UOB Kay Hian said that this would be a boon for SIA as it will give SIA a pricing advantage over competitors. He also added that this is particularly good because, for example, Chinese airlines usually do not hedge their jet fuel, and due to these high fuel prices, Chinese airlines will not lower the ticket price because this will affect certainly their profitability. However, although analyst Kay Hian said that SIA would have a competitive advantage due to high fuel prices, on July 26, 2018, SIA's net profit fell by 59%, which definitively the company's plan to recover losses from 2017 failed. Due to high jet fuel prices, Singapore Airlines' net profit fell to S$139.6 million compared..