Singapore Airlines' first quarter net profit soared 73 percent from last year, it said Wednesday, partly driven by higher passenger traffic.

The growth was magnified compared to the last year figures that had been affected by the rising prices of fuel and lesser demand to fly to the East due to tsunami and earthquake disasters in Japan.

The carrier said the net profit came in at Sg$ 78 million ($62 million) for the quarter to June 2012, compared with Sg$ 45 million last year, and was in line with analysts' expectations.

Group revenue advanced six percent to Sg$ 3.78 billion, while expenditure climbed four percent to Sg$ 3.71 billion as per a report in ET.

SIA shares closed at Sg$10.69 apiece at the stock market before the report was released.

Earnings were boosted by a rise in passenger volumes as it offered a host of promotions to bolster loads amid intense competition and a weak global economy, the airline said in a statement.

However, it was pessismistic for the rest of the year in a "difficult environment", with the price of jet fuel, which accounts for 40 percent of total expenditure, still near historical highs despite retreating.

"The global economy remains uncertain as Europe struggles to contain its debt crisis, while the United States faces a sluggish recovery," said the airline, which analysts said gets over half of its earnings from premium passengers.

"This has negatively impacted business confidence and the outlook for travel demand. Promotional efforts undertaken to boost carriage add downward pressure on yields, especially in Europe and the United States," it added.

SIA said the cargo business also remained under pressure, with forward indicators signalling weaker demand.

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