Singapore Airlines Ltd. profit fell in the fiscal first quarter from an all-time high a year ago as higher costs and lower yields continued to eat into the carrier’s earnings.

Net income for the three months ended June 30 decreased 38.4% to S$452 million ($337 million), the carrier said in a statement Wednesday. Revenue however rose 5.3% to S$4.7 billion thanks to a nearly 14% year-on-year rise in passengers during the period to 9.6 million, and a boost from cargo.

Non-fuel costs are just one of the things putting pressure on Singapore’s bottom line, rising 7.7% for the quarter, outpacing revenue growth. Jet fuel costs after hedging meanwhile increased 30.1% versus the same period of 2023, as increased flying and higher oil prices weighed on expenses.

Singapore Air isn’t the only carrier witnessing something of a comedown after the heady days post Covid. Concerns about profitability have been echoed by carriers in Europe and the US as the aviation industry resets following a record run after the pandemic.

Singapore’s flag carrier said demand should remain robust in coming months although passenger yields — a measure of the strength of airfares — will be lower than the previous year’s levels, when it delivered record results.

Air cargo also helped lift revenue, with e-commerce activity strong while also benefiting from wide-spread port congestion for sea shippers and longer journeys between Asia and Europe due to disruptions caused by attacks on vessels in the Red Sea.

Singapore Air is still operating at a 9.5% lower capacity than its pre-Covid peak in January 2020. Passenger numbers are 5.5% down from that period, operational data show. However, compared to the same time in 2019, Singapore Air is ahead on both passengers carried and capacity.

Shares in Singapore Air closed 0.9% higher Wednesday, taking gains this year to 6.3%.