Chinese competition is hitting both singapore airlines and hong kong rival cathay pacific, and neither has a big domestic customer base to rely on. On thursday, singapore airlines reported annual earnings down 55% to s$360 million. That missed analysts' expectations by a long shot and triggered a share drop of more than 6%. Rival cathay has been running fuller flights, but has had to slash ticket prices to lure customers. Singapore airlines is embracing that approach with some success.