SINGAPORE (July 27): Singapore Airlines (SIA) shares fell by as much as 5.5% on Friday, their biggest one-day drop in over a year, after the carrier reported a lower than expected first quarter profit the day before, driven by a decline in airfares.

Analysts were cutting their forecasts for the remainder of the year following a 3.2% decline in first-quarter passenger yields, a proxy for airfares, which bucked expectations for a rise that was seen in the broader global airline industry.

"Passenger yields could remain under pressure given SIA Group's more aggressive capacity expansion this year, especially on long-haul routes to Europe and North America," said Corrine Png, CEO of transport research firm Crucial Perspective.

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