Mainboard-listed, Singapore Airport Terminal Services, says its first quarter net earnings rose 17.1 percent to 40.4 million dollars.

Revenue jumped 44.1 percent to 351.7 million dollars for three months ended June.

SATS says the revenue increase was mainly due to the addition of Singapore Food Industries, which it acquired in March this year.

SATS saw lower aviation revenue in the quarter due the weak aviation industry.

In view of the challenging operating environment, the firm says it continued with its cost management measures during the period.

Looking ahead, SATS President and CEO Clement Woon says the addition of Singapore Food Industries will contribute positively to the firm's performance.

"We've started the full integration process since April, we've identified so far cost savings of about 6.5 million per annum. The cost savings realised today is greater than 2.6 million per annum. Initial areas identified for synergies include bakery, butchery, vegetables and fruit processing operation, procurement, commonalities of purchase materials."

But Mr Woon says demand in the aviation sector remains soft despite emerging signs of economic recovery.