Singapore Airlines on Friday flagged its earnings would stay under pressure despite robust travel demand in the second half of the year, while it reported a profit fall reflecting stiff market competition coupled with rising costs.

Singapore Airlines Ltd. signaled profitability will remain under pressure despite expected “robust” demand for travel in the second half of the fiscal year, as it reported a slump in profit.

The airline posted sharply weaker second-quarter earnings as increased capacity and stiffer competition in key markets weighed on yields.