SINGAPORE, May 16, 2012 (AFP) - Singapore Airlines (SIA) said Wednesday it will suspend services to Athens and Abu Dhabi due to "sustained weak performance" on both routes.
The last flights to the two cities will depart Singapore on October 26, the carrier said in a statement.
"Singapore Airlines will be suspending services to Abu Dhabi in the UAE (United Arab Emirates) and Athens in Greece as a result of the sustained weak performance of both routes," it said.
"The decision to suspend services is a difficult one, as Athens has been served since 1972 and Abu Dhabi since 2006. The suspensions are in line with Singapore Airlines' policy to match capacity to prevailing market demand."
Greece is again at the centre of the eurozone debt crisis after an election on May 6 in which Greeks voted for parties opposing the austerity measures which Athens agreed to in return for a massive EU-IMF bailout late last year.
The head of the International Monetary Fund on Tuesday raised the possibility that Greece could leave the eurozone in an orderly fashion.
SIA said it will continue to serve Dubai, which is also in the UAE, while connections to and from Athens are possible on its partner carriers in the Star Alliance.
SIA's net profit for the financial year ended in March tumbled 69 percent to Sg$336 million ($268 million), weighed down by a rare loss in the fourth quarter.
Asia's premium airlines such as SIA -- which get a bulk of their revenues from first and business-class passengers -- are among the hardest hit by persistent high oil prices and global economic uncertainty sparked by the eurozone debt woes and patchy US economic recovery.
In addition, they are also under pressure in the premium segment due to fiercer competition from Middle Eastern carriers which have vastly improved their services and at the lower end of the market by budget airlines.
mba/pdh
