Singapore Airlines, the world’s second-largest carrier by market value, posted better-than- expected quarterly profit as the rebounding global economy revived air-travel demand.

Net income was $380 million in the three months ended September, compared with a loss of $159 million, a year earlier, the carrier said in a statement today. That surpassed the $366 million average of seven analyst estimates compiled by Bloomberg. Second-quarter revenue increased 18% to $3.6 billion.

 

Singapore Airlines, which gets 40% of sales from business-class travelers, posted a fourth consecutive quarterly profit as global air travel recovers from the worst drop since World War II. All Nippon Airways Co. also last month raised its forecast for annual profit, while Air China, the world’s largest carrier by market value, boosted profit more than fivefold.

 

“Singapore Air will continue to benefit from a global recovery and an increase in demand for leisure and business travel in the medium-to-long term,” said Steven Lim, who manages about US$200 million ($257.3 million) at Daiwa SB Investments in Singapore. “The recovery in premium travel is still intact.”

 

Singapore Airlines gained 0.9% to $16.32 at the close of trading today. The results were released after the market closed. Of the 23 analysts tracked by Bloomberg data in the past 12 months, 20 have a “buy” rating, two recommended that investors hold the stock, while one says “sell.”

 

The carrier has resumed all services on its Airbus SAS A380 after conducting “precautionary technical checks” recommended by Rolls-Royce Group Plc and the planemaker following a Qantas Airways engine blowout on Nov. 4. Singapore Airlines, the first to fly the double-decker plane, has 11 Airbus A380s.