Singapore Airlines' (SIA) net profit for financial year 2013, which was ended on March 31, 2014, fell 5.1 percent to 359.5 million SGD from 378.9 million SGD a year ago.

In a statement issued on May 8, the flag carrier attributed net profit decreases to losses by associated companies, mainly budget carrier Tiger Airways, of which it owns 40 percent, to a legal suit filed in the United States against its freight arm SIA Cargo and to higher fuel costs.

Revenue edged up to 15.24 billion SGD from 15.1 billion SGD a year ago, the statement added.

“The operating environment for the group continues to be challenging with intense competition in many areas, and economic uncertainty in key markets,” SIA said.

SIA, majority-controlled by Singapore state investment arm Temasek Holdings, is facing stiff competition from Middle Eastern and Asian carriers, as well as Asia's growing ranks of budget airlines.

The airline currently has a fleet of 103 passenger aircraft and its network flies to 107 destinations in 39 countries.-VNA