SQ managed to get out of the hole after a disastrous loss in the previous quarter caused by SARS and the overall poor airline business. Here's the report from Channel News Asia. (Exchange rate S$1=US$0.59. S$306 million is approximately US$180 million.) SINGAPORE : Singapore Airlines (SIA) returned to profit in the September quarter after SARS forced it into its first-ever loss in the previous three months. SIA reported a net profit of S$306m for its second quarter, citing a rebound in traffic and cost cuts. But for the first half, SIA lost S$6.5 million from a S$773.5 million profit on year. Revenue in the second quarter fell to S$2.5 billion from S$2.7 billion in the previous year, but was sharply higher than the S$1.65 billion in the first quarter. SIA suffered an unprecedented first-quarter net loss of S$312m as SARS hammered travel demand. The Severe Acute Respiratory Syndrome (SARS) outbreak had dealt a heavy blow to Asian carriers such as Cathay Pacific Airways and SIA, forcing them to suspend flights, trim costs and to offer heavily discounted air fares to entice people to travel. SIA cut wages, slashed capacity by a third, and axed nearly 600 staff - the largest lay-offs in its 56-year history. But along with other Asian carriers, it is seeing travel demand return and has restored flights back to pre-SARS levels. "Passenger demand is expected to remain buoyant in the next two quarters, especially during the traditional year-end travel peak," the airline said in a results' statement. "Additional capacity will be added to meet the expected high demand. Fares are, however, still under pressure though most of the discounts introduced to revive traffic in the aftermath of SARS have expired," the carrier said. "No interim dividend will be declared because both the Group and the company suffered losses in the April-September 2003 half of the financial year," the results' statement added.