MAY 2011 OPERATING RESULTS

In May 2011, Singapore Airlines’ capacity (measured in available seat kilometers) grew 6.0% year-on-year against a 4.3% increase in system wide passenger carriage (measured in revenue passenger kilometers). As a result, passenger load factor (PLF) declined 1.2 percentage points to 73.6%. The number of passengers carried increased by 4.0% to 1.4 million.

The beginning of Northern Summer 2011 on March 27, 2011 marked the launch of our thrice-weekly service to Sao Paulo via Barcelona. Concurrently, we added our seventh daily tranche to Hong Kong. Guangzhou now operates with daily flights following the deployment of two extra services per week. A four times weekly service was introduced on the Taipei route, taking frequency up to 18 flights per week. Capacity to Male also grew from seven to ten flights weekly. In view of the situation in Japan, we suspended one of two daily services to Tokyo (Haneda) and postponed plans to deploy the A380 to Los Angeles (via Tokyo Narita) to July 1, 2011.

PLFs for all regions rose compared to the same month last year, except for East Asia and Americas. Travel sentiment to East Asia, in particular Japan, continued to be affected. Despite growth in passenger carriage, load factors for the Americas region dipped 3.1 percentage points as the increase in traffic still lagged the rate of capacity expansion.

System wide cargo capacity increased by 3.6% and cargo traffic (measured in freight tonne kilometres) improved by 0.6%. Consequently, overall load factor in May 2011 declined by 1.9 percentage points. Cargo load factor dropped for all regions, except for South West Pacific region. Significant capacity injection and stiff market competition resulted in the weaker load factor.