Singapore Airlines, the world’s second-largest carrier by market value, reported a 29% drop in third-quarter profit after charges related to antitrust cargo fines.

Net income fell to $288.3 million in the three months ended December from $404 million, a year earlier, the carrier said in a statement to the Singapore stock exchange today. Profit was expected to be $299 million, based on the average of six analyst estimates compiled by Bloomberg. Sales rose 12% to $3.84 billion. Singapore Air said it made a provision for $199 million toward the fine.

The carrier, the third-worst performing stock in the Bloomberg Asia-Pacific Airlines Index last year, flew fewer passengers and filled a smaller proportion of seats as budget airlines Jetstar and Tiger Airways Holdings Ltd. lured away cost-conscious travelers. New Chief Executive Officer Goh Choon Phong also faces renewed competition from Cathay Pacific Airways and Middle East carriers for lucrative premium fliers.

 

“Singapore Air has lagged behind compared with regional peers,” said Kelvin Lau, a Hong Kong-based analyst at Daiwa Institute of Research Pte. “They need to focus on improving their margins and work harder on the traffic side.”