GET SET for higher air fares in the Asia-Pacific: That’s the message from the latest traffic report from the region’s most successful airline, Singapore Airlines, which today all but declared the global financial crisis over for the world’s biggest travel market.

SIA, which has rarely finished in the red, says it returned to profitability in the third quarter of the financial year (which ends in March) with a net profit of $S404 million after losses of $307 million in the first quarter and $159 million in the second quarter.

Group revenue at $3418 million was $336 million (+10.9%) higher than the second quarter.

"The company continues to adjust capacity to match demand," SIA says. "During the quarter, there were increased frequencies to Auckland, Christchurch, Brisbane, Perth, Manchester, Rome and Houston (via Moscow), and since 19 January 2010 the non-stop all-Business Class service to Newark (New York) has returned to daily operations.

"On the other hand, flights to Athens and Dubai were reduced during the quarter, and services to Pakistan and Nanjing will be suspended with effect from February 2010 and March 2010, respectively.

"From late March, Munich will be added to the SIA network, and the A380 will be deployed to Zurich.

"Passenger loadings in January and bookings in hand indicate that the recovery in the third quarter is likely to continue in the final quarter of the current financial year. The improvement in yields (average fares paid) is also holding up.

"The business outlook for the group in 2010 is encouraging but it must be acknowledged that uncertainties linger over the global economy."