Singapore Airlines reported lower third quarter net profit, hit by provisions for fines by the European Commission and South Korean regulator, as well as a settlement with US authorities on cargo price-fixing charges.

Phillip said that if the non-recurring cargo fines of $199.1 million were removed, SIA’s profit after tax and minority interests actually increased 21% year-on-year to $487.4 million.

The brokerage said that fuel costs were within its expectations as the impact of hedging was minimal for the quarter, adding that it expected a higher passenger yield resulting from the announced fare increases.

SIA said it will increase its fuel surcharge for tickets issued on or after Jan 27 as a result of the recent escalation in jet fuel price.