Posted on: Wednesday, November 7, 2001

Singapore Airlines to reduce flights to U.S.

By Tan Hwee Ann
Bloomberg News Service

SINGAPORE — Singapore Airlines Ltd., Asia's third largest carrier, will reduce flights to the United States and Japan next year as demand falls in the aftermath of the Sept. 11 terrorist attacks.

The airline, which last month warned it may report its first annual loss since listing in 1985, said it will cut seating capacity to the United States by 20 percent and to Japan by 13 percent from Jan. 13 to April 30.

It was unclear yesterday which specific flights would be cut.

"In view of the present market conditions coupled with the approach of the off-peak northern winter season, Singapore Airlines has announced further schedule changes to better match expected demand," the airline said in a statement.

In October, Singapore Air posted an 88 percent decline in first-half profit to S$134.8 million ($74 million), as slowing economies hurt demand. Since the terrorist attacks in the United States, there has been a severe decline in corporate and leisure travel, prompting the airline to cut pay and routes.

The airline also said it will cut flights to Taipei, Taiwan, and Perth, Australia. It will, however, increase services to Australia and New Zealand by 25 flights in December to meet "peak demand."

Singapore Air said it plans to restore capacity on the U.S. routes from May onward.