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

Net income declined 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. Singapore Air made a provision of $199 million for the fines.

 

The carrier flew fewer passengers and filled a smaller proportion of seats as budget airlines Jetstar and Tiger Airways Holdings 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,” Kelvin Lau, a Hong Kong-based analyst at Daiwa Institute of Research, said before the earnings. “They need to focus on improving their margins and work harder on the traffic side.”

 

Singapore Air was unchanged at $15.04 at the close of trading today. The stock rose 2.4% last year, while the 15-member of the Bloomberg Asia-Pacific Airlines Index surged 28%. The results were released after the market closed.