Singapore Airlines Ltd., the world’s second-biggest carrier by market value, may have its first annual loss as a publicly traded company as the global recession saps travel demand.

“It is a difficult time and most airlines will probably record a loss,” said Jason Teh, who helps manage more than $2.5 billion at Investors Mutual Ltd. in Sydney. “A full recovery for the airlines isn’t going to happen this year.”

The deepest recession since World War II and the spreading swine flu pandemic led to a ten-month drop in global passenger traffic, according to the International Air Transport Association, also known as IATA. Airlines in Asia Pacific may lose the most money of any region this year, the trade group said.

The number of premium travelers has fallen as companies cut budgets and travelers pick cheaper seats, IATA said. Singapore Air gets about 40 percent of its revenue from first- and business-class clients.

“Singapore Air will be hit worse than the other airlines because of its emphasis on premium travel,” said Kelvin Lau, an analyst at Daiwa Institute of Research Ltd. in Hong Kong.

The operating loss, or sales minus the cost of goods sold and selling, general and administrative expenses, was S$319 million in the three months to June, compared with a profit of S$343.2 million a year earlier. Sales sank 31 percent to S$2.87 billion.

Singapore Air gained 1.4 percent to S$13.52 at the close of trading Thursday. Earnings were released after the market closed. Of the 21 analysts tracked by Bloomberg in the past 12 months, 10 recommend that investors sell the stock, seven have “buy” ratings, while the remainder have “hold” calls.

Global airlines may rack up losses totaling $9 billion this year as travel slows, said IATA.

Singapore Air’s management will get at least a 10 percent reduction in salary from this month, while Chief Executive Officer Chew Choon

Seng will take a 20 percent cut, according to the airline. Pilots have agreed to forgo 65 percent of one day’s wage, pro-rated from their monthly salary.

Source: Bloomberg