Singapore Airlines (SIA), one of the world's best airlines because of their extraordinary service, reported on Thursday a net profit of 143 million Singapore dollars ($115.5 million) for the third quarter in Financial Year (FY) 2012-13 ended on last December 31, up 6 percent on year.

"This is due to an increase in non-operating items from surplus on the sale of aircraft, spares and spare engines, and higher net interest income, partially offset by a 20 million Singapore dollars ($16.2 million) provision by SIA Cargo in relation to air cargo civil penalty proceedings in respect of competition law matters in Australia and New Zealand." the group said in a statement.

In terms of operating profits, the figure slowed down to 131 million Singapore dollars ($105.8 million) during the period of last September to December, 17 percent lower than a year ago.

Meanwhile, group revenue fell marginally by 0.4 percent on year to 3.86 billion Singapore dollars ($3.12 billion), mainly from lower cargo revenue due to depressed yields and poorer loads.

Almost all the group's units, including SIA Engineering and SilkAir, saw operating profits up except the SIA Cargo.

However, for last April to December period, the group posted a net profit of 311 million Singapore dollars ($251 million), a decline of 17 percent from the corresponding period in the previous year.

"The outlook for international air travel demand continues to be challenging and the cargo market remains depressed amid the troubled European economy and the weak recovery in the United States," the group said in a statement, adding that a historical high for the price of jet fuel and the depreciation of revenue- generating currencies against the Singapore dollar will pose challenges in the future.

The SIA had decided to cut 76 pilots on fixed-term contracts by the end of June, when their contracts will have not expired, aiming at reducing excess labour force amid business slowdown. The act was after their efforts to address the labour force surplus before, such as voluntary no pay leave and the suspension of cadet pilot recruitment.